Head-To-Head Review: EPR Properties (EPR) & CBL & Associates Properties (CBL)

EPR Properties (NYSE: EPR) and CBL & Associates Properties (NYSE:CBL) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.

Profitability

This table compares EPR Properties and CBL & Associates Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EPR Properties 45.71% 10.01% 4.65%
CBL & Associates Properties 16.13% 9.55% 2.09%

Dividends

EPR Properties pays an annual dividend of $4.08 per share and has a dividend yield of 6.4%. CBL & Associates Properties pays an annual dividend of $1.06 per share and has a dividend yield of 18.5%. EPR Properties pays out 121.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CBL & Associates Properties pays out 168.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EPR Properties has raised its dividend for 6 consecutive years.

Earnings & Valuation

This table compares EPR Properties and CBL & Associates Properties’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EPR Properties $493.24 million 9.58 $224.98 million $3.36 19.10
CBL & Associates Properties $1.03 billion 0.96 $172.88 million $0.63 9.11

EPR Properties has higher earnings, but lower revenue than CBL & Associates Properties. CBL & Associates Properties is trading at a lower price-to-earnings ratio than EPR Properties, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

88.5% of EPR Properties shares are held by institutional investors. Comparatively, 95.8% of CBL & Associates Properties shares are held by institutional investors. 1.5% of EPR Properties shares are held by company insiders. Comparatively, 11.7% of CBL & Associates Properties shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for EPR Properties and CBL & Associates Properties, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EPR Properties 1 2 2 0 2.20
CBL & Associates Properties 8 5 0 0 1.38

EPR Properties currently has a consensus target price of $77.00, indicating a potential upside of 20.01%. CBL & Associates Properties has a consensus target price of $8.66, indicating a potential upside of 50.81%. Given CBL & Associates Properties’ higher probable upside, analysts plainly believe CBL & Associates Properties is more favorable than EPR Properties.

Risk and Volatility

EPR Properties has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, CBL & Associates Properties has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Summary

EPR Properties beats CBL & Associates Properties on 11 of the 17 factors compared between the two stocks.

About EPR Properties

EPR Properties is a specialty real estate investment trust. The Company’s investment portfolio includes primarily entertainment, education and recreation properties. The Company’s segments include Entertainment, Education, Recreation and Other. The Entertainment segment consists of investments in megaplex theatres, entertainment retail centers, family entertainment centers and other retail parcels. The Education segment consists of investments in public charter schools, early education centers and K-12 private schools. The Recreation segment consists of investments in ski areas, waterparks, golf entertainment complexes and other recreation. The Other segment consists primarily of land under ground lease, property under development and land held for development. As of December 31, 2016, the Company’s owned real estate portfolio of megaplex theatres consisted of approximately 10.6 million square feet.

About CBL & Associates Properties

CBL & Associates Properties, Inc. is a self-managed, self-administered, integrated real estate investment trust. The Company owns, develops, acquires, leases, manages and operates regional shopping malls, open-air and mixed-use centers, outlet centers, associated centers, community centers and office properties. Its segments are Malls, Associated Centers, Community Centers and All Other. As of December 31, 2016, the Company owned a controlling interest in 65 Malls and non-controlling interests in nine Malls. As of December 31, 2016, the Company owned a controlling interest in 20 Associated Centers and a non-controlling interest in three Associated Centers. As of December 31, 2016, the Company owned a controlling interest in four Community Centers and a non-controlling interest in five Community Centers. As of December 31, 2016, the Company’s properties were located in 27 states, primarily in the southeastern and mid-western United States.

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