Critical Analysis: Brandywine Realty Trust (BDN) and Mack-Cali Realty Corporation (CLI)
Brandywine Realty Trust (NYSE: BDN) and Mack-Cali Realty Corporation (NYSE:CLI) are both mid-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.
Earnings & Valuation
This table compares Brandywine Realty Trust and Mack-Cali Realty Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Brandywine Realty Trust||$512.29 million||5.79||$227.17 million||$0.08||212.53|
|Mack-Cali Realty Corporation||$641.51 million||3.32||$321.83 million||($0.26)||-91.19|
Mack-Cali Realty Corporation has higher revenue and earnings than Brandywine Realty Trust. Mack-Cali Realty Corporation is trading at a lower price-to-earnings ratio than Brandywine Realty Trust, indicating that it is currently the more affordable of the two stocks.
Brandywine Realty Trust pays an annual dividend of $0.64 per share and has a dividend yield of 3.8%. Mack-Cali Realty Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 3.4%. Brandywine Realty Trust pays out 800.1% 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 has raised its dividend for 2 consecutive years.
Insider & Institutional Ownership
98.7% of Brandywine Realty Trust shares are held by institutional investors. Comparatively, 99.2% of Mack-Cali Realty Corporation shares are held by institutional investors. 1.8% of Brandywine Realty Trust shares are held by company insiders. Comparatively, 6.8% of Mack-Cali Realty Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares Brandywine Realty Trust and Mack-Cali Realty Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Brandywine Realty Trust||4.67%||1.48%||0.68%|
|Mack-Cali Realty Corporation||-3.31%||-1.21%||-0.44%|
This is a summary of recent recommendations for Brandywine Realty Trust and Mack-Cali Realty Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brandywine Realty Trust||1||3||4||0||2.38|
|Mack-Cali Realty Corporation||1||2||3||0||2.33|
Brandywine Realty Trust presently has a consensus target price of $17.50, suggesting a potential upside of 2.94%. Mack-Cali Realty Corporation has a consensus target price of $29.17, suggesting a potential upside of 23.01%. Given Mack-Cali Realty Corporation’s higher probable upside, analysts plainly believe Mack-Cali Realty Corporation is more favorable than Brandywine Realty Trust.
Risk & Volatility
Brandywine Realty Trust has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Mack-Cali Realty Corporation has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.
Brandywine Realty Trust beats Mack-Cali Realty Corporation on 9 of the 17 factors compared between the two stocks.
About Brandywine Realty Trust
Brandywine Realty Trust is a self-administered and self-managed real estate investment trust (REIT). The Company operates through five segments: Pennsylvania Suburbs, Philadelphia Central Business District (CBD), Metropolitan Washington, D.C., Austin, Texas, and Other. The Pennsylvania Suburbs segment includes properties in Chester, Delaware and Montgomery counties in the Philadelphia suburbs. The Philadelphia CBD segment includes properties located in the City of Philadelphia in Pennsylvania. The Metropolitan Washington, D.C. segment includes properties in the District of Columbia, Northern Virginia and Southern Maryland. The Austin, Texas segment includes properties in the City of Austin, Texas. The Other segment includes properties in Burlington and Camden counties in New Jersey, New Castle County in the state of Delaware and the City of Concord in California. As of December 31, 2016, the Company owned 113 properties that had approximately 17.6 million net rentable square feet.
About Mack-Cali Realty Corporation
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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