One Liberty Properties (NYSE: OLP) and NRF Holdco (NYSE:NRF) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.
Risk & Volatility
One Liberty Properties has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, NRF Holdco has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500.
One Liberty Properties pays an annual dividend of $1.72 per share and has a dividend yield of 7.3%. NRF Holdco pays an annual dividend of $1.60 per share and has a dividend yield of 9.9%. One Liberty Properties pays out 147.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NRF Holdco pays out -67.2% of its earnings in the form of a dividend. One Liberty Properties has increased its dividend for 4 consecutive years. NRF Holdco is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation & Earnings
This table compares One Liberty Properties and NRF Holdco’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|One Liberty Properties||$74.78 million||5.88||$48.43 million||$1.17||20.18|
One Liberty Properties has higher revenue and earnings than NRF Holdco. NRF Holdco is trading at a lower price-to-earnings ratio than One Liberty Properties, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for One Liberty Properties and NRF Holdco, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|One Liberty Properties||0||2||0||0||2.00|
One Liberty Properties presently has a consensus target price of $24.75, suggesting a potential upside of 4.83%. NRF Holdco has a consensus target price of $16.00, suggesting a potential downside of 0.81%. Given One Liberty Properties’ higher probable upside, equities analysts clearly believe One Liberty Properties is more favorable than NRF Holdco.
Insider & Institutional Ownership
40.1% of One Liberty Properties shares are owned by institutional investors. Comparatively, 69.7% of NRF Holdco shares are owned by institutional investors. 8.6% of One Liberty Properties shares are owned by insiders. Comparatively, 2.4% of NRF Holdco shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares One Liberty Properties and NRF Holdco’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|One Liberty Properties||29.14%||7.49%||2.92%|
One Liberty Properties beats NRF Holdco on 8 of the 14 factors compared between the two stocks.
One Liberty Properties Company Profile
One Liberty Properties, Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company acquires, owns and manages a geographically diversified portfolio consisting of retail, industrial, flex, and health and fitness properties. As of December 31, 2016, the Company owned 114 properties and participated in joint ventures that own five properties. These 119 properties are located in 30 states and have an aggregate of approximately 10.1 million square feet (including an aggregate of approximately 1.2 million square feet at properties owned by its joint ventures). As of December 31, 2016, the Company’s property locations included Fort Mill, South Carolina; Royersford, Pennsylvania; Round Rock, Texas; W.Hartford, Connecticut; Delport, Missouri; Brooklyn, New York City; Lakemoor, Illinois; Tucker, Georgia; Cedar Park, Texas; Lake Charles, Louisiana; Sandy Springs, Georgia; Wichita, Kansas; Melville, New York; Ronkonkoma, New York, and Niles, Illinois.
NRF Holdco Company Profile
NRF Holdco LLC. is a commercial real estate company. The Company invests in multiple asset classes across commercial real estate (CRE). Its portfolio consists of healthcare, hotel, manufactured housing communities, net lease and multifamily properties. The Company also invests in other opportunistic real estate investments, such as indirect interests in real estate through its investments in private equity funds (PE Investments). The Company also acquires and operates hotel and certain healthcare properties. The Company’s segments include Real Estate, Commercial Real Estate Debt (CRE debt), Commercial Real Estate Securities, N-Star CDOs and Corporate. Its real estate equity investments that operate under the REIT Investment Diversification and Empowerment Act (RIDEA) structure generate resident and hotel guest related income from short-term residential agreements. The Company is externally managed and advised by an affiliate of NorthStar Asset Management Group Inc.
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