Clipper Realty (CLPR) vs. Home Properties (HME) Critical Survey

Clipper Realty (NYSE: CLPR) and Home Properties (NYSE:HME) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Dividends

Clipper Realty pays an annual dividend of $0.38 per share and has a dividend yield of 4.7%. Home Properties does not pay a dividend. Clipper Realty pays out -190.0% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and target prices for Clipper Realty and Home Properties, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Clipper Realty 0 0 4 0 3.00
Home Properties 0 0 0 0 N/A

Clipper Realty currently has a consensus price target of $15.75, indicating a potential upside of 94.68%. Given Clipper Realty’s higher possible upside, research analysts clearly believe Clipper Realty is more favorable than Home Properties.

Profitability

This table compares Clipper Realty and Home Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Clipper Realty -2.66% -0.74% -0.13%
Home Properties 18.18% 6.60% 2.87%

Institutional & Insider Ownership

56.9% of Clipper Realty shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Clipper Realty and Home Properties’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Clipper Realty $93.00 million 1.55 -$3.73 million ($0.20) -40.45
Home Properties N/A N/A N/A $2.32 32.43

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

Summary

Clipper Realty beats Home Properties on 6 of the 11 factors compared between the two stocks.

Clipper Realty Company Profile

Clipper Realty, Inc. is a real estate investment trust, which acquires, owns, manages, operates and repositions multi-family residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn. The Company’s segments include Commercial and Residential. As of June 30, 2016, it owned two residential/retail rental properties at 50 Murray Street and 53 Park Place in the Tribeca neighborhood of Manhattan, referred to as the Tribeca House properties. As of June 30, 2016, it also owned a residential property complex in the East Flatbush neighborhood of Brooklyn consisting of 59 buildings, referred to as the Flatbush Gardens properties or complex. As of June 30, 2016, it owned two primarily commercial properties in Downtown Brooklyn (one of which included 36 residential apartment units), referred to as the 141 Livingston Street property and the 250 Livingston Street property, and also owned the Aspen property.

Home Properties Company Profile

Home Properties, Inc. (Home Properties) is a self-administered and self-managed real estate investment trust (REIT). The Company owns, operates, acquires and repositions apartment communities in suburbs of metropolitan areas, primarily along the East Coast of the United States. The Company conducts its business through Home Properties, L.P. (the Operating Partnership), and a management company, Home Properties Resident Services, Inc. (HPRS). As of December 31, 2014, the Company owned and operated 121 communities with 42,107 apartment units. The Company’s properties are two- and three-story garden style apartment buildings in landscaped settings and brick or other masonry construction. As of December 31, 2014, approximately 26.6%, 24.9%, 14.0%, 8.5% and 8.5% of the Company’s Properties are located in the Washington, D.C., Baltimore, Philadelphia, Long Island and Northern New Jersey markets, respectively.

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