Highwoods Properties (NYSE: HIW) and Mack-Cali Realty Corporation (NYSE:CLI) are both mid-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Dividends

Highwoods Properties pays an annual dividend of $1.76 per share and has a dividend yield of 3.4%. Mack-Cali Realty Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 3.5%. Highwoods Properties pays out 141.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mack-Cali Realty Corporation pays out -307.7% of its earnings in the form of a dividend. Mack-Cali Realty Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Highwoods Properties and Mack-Cali Realty Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Highwoods Properties $683.61 million 7.77 $366.80 million $1.24 41.47
Mack-Cali Realty Corporation $641.51 million 3.21 $321.83 million ($0.26) -88.23

Highwoods Properties has higher revenue and earnings than Mack-Cali Realty Corporation. Mack-Cali Realty Corporation is trading at a lower price-to-earnings ratio than Highwoods Properties, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Highwoods Properties and Mack-Cali Realty Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Highwoods Properties 18.79% 5.96% 2.82%
Mack-Cali Realty Corporation -3.31% -1.21% -0.44%

Analyst Ratings

This is a summary of current recommendations for Highwoods Properties and Mack-Cali Realty Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Highwoods Properties 0 1 2 0 2.67
Mack-Cali Realty Corporation 1 2 2 0 2.20

Highwoods Properties currently has a consensus target price of $54.67, suggesting a potential upside of 6.31%. Mack-Cali Realty Corporation has a consensus target price of $29.00, suggesting a potential upside of 26.42%. Given Mack-Cali Realty Corporation’s higher possible upside, analysts plainly believe Mack-Cali Realty Corporation is more favorable than Highwoods Properties.

Volatility and Risk

Highwoods Properties has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Mack-Cali Realty Corporation has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.

Institutional & Insider Ownership

98.4% of Highwoods Properties shares are owned by institutional investors. Comparatively, 99.2% of Mack-Cali Realty Corporation shares are owned by institutional investors. 1.9% of Highwoods Properties shares are owned by insiders. Comparatively, 6.8% of Mack-Cali Realty Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Highwoods Properties beats Mack-Cali Realty Corporation on 9 of the 15 factors compared between the two stocks.

Highwoods Properties Company Profile

Highwoods Properties, Inc. is an office real estate investment trust (REIT). The Company’s primary business is the operation, acquisition and development of office properties. The Company’s segments include Office and Other. The Company owns, develops, acquires, leases and manages properties primarily in the best business districts (BBDs) of Atlanta, Greensboro, Memphis, Nashville, Orlando, Pittsburgh, Raleigh, Richmond and Tampa. The Company conducts its activities through Highwoods Realty Limited Partnership (the Operating Partnership). The Company offers a range of real estate services to its customers. The Company offers services, including asset management, construction management, design and space planning, and renovation and re-positioning. The Company provides its customers with services, such as build-to-suit construction and space modification, including tenant improvements and expansions.

Mack-Cali Realty Corporation Company Profile

Mack-Cali Realty Corporation is a self-administered and self-managed real estate investment trust (REIT). The Company owns and operates a real estate portfolio of Class A office and office/flex properties. It operates in three segments: commercial and other real estate, multi-family real estate and multi-family services. Its commercial and other real estate provides leasing, property management, acquisition, development, construction and tenant-related services for its commercial and other real estate, and multi-family real estate portfolio. Its multi-family services business also provides similar services for third parties. It owned or had interests in approximately 248 properties, consisting of approximately 119 office and approximately 110 flex properties, totaling approximately 26.6 million square feet, leased to approximately 1,600 commercial tenants and approximately 19 multi-family rental properties containing approximately 5,614 residential units, plus developable land.

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