Monmouth Real Estate Investment Corporation (NYSE: MNR) and Urstadt Biddle Properties (NYSE:UBA) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Risk & Volatility

Monmouth Real Estate Investment Corporation has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500. Comparatively, Urstadt Biddle Properties has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.

Valuation and Earnings

This table compares Monmouth Real Estate Investment Corporation and Urstadt Biddle Properties’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Monmouth Real Estate Investment Corporation $108.67 million 11.07 $82.64 million $0.30 53.93
Urstadt Biddle Properties $122.07 million 6.64 $74.49 million $1.07 20.08

Monmouth Real Estate Investment Corporation has higher revenue, but lower earnings than Urstadt Biddle Properties. Urstadt Biddle Properties is trading at a lower price-to-earnings ratio than Monmouth Real Estate Investment Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Monmouth Real Estate Investment Corporation and Urstadt Biddle Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Monmouth Real Estate Investment Corporation 32.02% 7.91% 2.69%
Urstadt Biddle Properties 44.45% 13.62% 5.65%

Analyst Recommendations

This is a breakdown of recent ratings for Monmouth Real Estate Investment Corporation and Urstadt Biddle Properties, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Monmouth Real Estate Investment Corporation 0 1 3 0 2.75
Urstadt Biddle Properties 0 0 1 0 3.00

Monmouth Real Estate Investment Corporation presently has a consensus target price of $16.75, indicating a potential upside of 3.52%. Urstadt Biddle Properties has a consensus target price of $22.00, indicating a potential upside of 2.37%. Given Monmouth Real Estate Investment Corporation’s higher possible upside, research analysts plainly believe Monmouth Real Estate Investment Corporation is more favorable than Urstadt Biddle Properties.

Dividends

Monmouth Real Estate Investment Corporation pays an annual dividend of $0.64 per share and has a dividend yield of 4.0%. Urstadt Biddle Properties pays an annual dividend of $1.06 per share and has a dividend yield of 4.9%. Monmouth Real Estate Investment Corporation pays out 213.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Urstadt Biddle Properties pays out 99.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Monmouth Real Estate Investment Corporation has raised its dividend for 17 consecutive years and Urstadt Biddle Properties has raised its dividend for 2 consecutive years. Urstadt Biddle Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

60.6% of Monmouth Real Estate Investment Corporation shares are held by institutional investors. Comparatively, 59.3% of Urstadt Biddle Properties shares are held by institutional investors. 5.3% of Monmouth Real Estate Investment Corporation shares are held by company insiders. Comparatively, 20.1% of Urstadt Biddle Properties shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Urstadt Biddle Properties beats Monmouth Real Estate Investment Corporation on 10 of the 17 factors compared between the two stocks.

Monmouth Real Estate Investment Corporation Company Profile

Monmouth Real Estate Investment Corporation is a real estate investment trust (REIT). The Company’s primary business is the ownership of real estate. Its investment focus is to own single tenant, industrial buildings and leased to investment-grade tenants or their subsidiaries on long-term net leases. In addition, the Company owns a portfolio of REIT investment securities. Its assets are situated near airports, transportation hubs and manufacturing plants. The Company’s featured properties include ULTA Cosmetics, Milwaukee Tool, Beam Suntory, FedEx Supply Chain Services, Coca-Cola, Best Buy, International Paper, Home Depot, FedEx Ground, Actavis, Anheuser-Busch, United Technologies, Kellogg’s, Siemens, National Oilwell and Cardinal Health. The Company’s property portfolio consists of approximately 105 properties located in over 30 states, containing a total of approximately 17.9 million rentable square feet.

Urstadt Biddle Properties Company Profile

Urstadt Biddle Properties Inc. is a real estate investment trust, which is engaged in the acquisition, ownership and management of commercial real estate. The Company owns Ridgeway Shopping Center (Ridgeway) property, which is located in Stamford, Connecticut. Its segments include Ridgeway and All Other Operating Segments. Its primary business is the ownership of real estate investments with primary emphasis on properties in the metropolitan New York tri-state area outside of the City of New York. As of October 31, 2016, the Company’s properties consisted principally of neighborhood and community shopping centers and seven office buildings. As of March 30, 2017, the Company owned or had equity interests in 80 properties, including neighborhood and community shopping centers, office buildings, single tenant retail or restaurant properties and office/retail mixed-use properties located in four states throughout the United States.

Receive News & Stock Ratings for Monmouth Real Estate Investment Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Monmouth Real Estate Investment Corporation and related stocks with our FREE daily email newsletter.