Paramount Group (PGRE) vs. Mack-Cali Realty Corporation (CLI) Financial Contrast
Paramount Group (NYSE: PGRE) and Mack-Cali Realty Corporation (NYSE:CLI) are both mid-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.
Volatility and Risk
Paramount Group has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, Mack-Cali Realty Corporation has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.
Insider & Institutional Ownership
62.8% of Paramount Group shares are held by institutional investors. Comparatively, 99.2% of Mack-Cali Realty Corporation shares are held by institutional investors. 5.9% of Paramount Group 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 company will outperform the market over the long term.
Paramount Group pays an annual dividend of $0.38 per share and has a dividend yield of 2.3%. Mack-Cali Realty Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 3.4%. Paramount Group pays out 92.7% 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.
This is a breakdown of current ratings and recommmendations for Paramount Group and Mack-Cali Realty Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Mack-Cali Realty Corporation||1||2||4||0||2.43|
Paramount Group currently has a consensus target price of $15.50, indicating a potential downside of 4.62%. Mack-Cali Realty Corporation has a consensus target price of $28.43, indicating a potential upside of 20.46%. Given Mack-Cali Realty Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe Mack-Cali Realty Corporation is more favorable than Paramount Group.
This table compares Paramount Group and Mack-Cali Realty Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Mack-Cali Realty Corporation||-3.31%||-1.21%||-0.44%|
Valuation & Earnings
This table compares Paramount Group and Mack-Cali Realty Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Paramount Group||$708.66 million||5.48||$384.89 million||$0.41||39.64|
|Mack-Cali Realty Corporation||$641.51 million||3.30||$321.83 million||($0.26)||-90.77|
Paramount Group has higher revenue and earnings than Mack-Cali Realty Corporation. Mack-Cali Realty Corporation is trading at a lower price-to-earnings ratio than Paramount Group, indicating that it is currently the more affordable of the two stocks.
Mack-Cali Realty Corporation beats Paramount Group on 8 of the 15 factors compared between the two stocks.
About Paramount Group
Paramount Group, Inc. is a fully-integrated real estate investment trust (REIT) focused on owning, operating, managing, acquiring and redeveloping Class A office properties in select central business district submarkets of New York City, Washington, District of Columbia (D.C.) and San Francisco. The Company conducts its business through, and substantially all its interests in properties and investments are held by, Paramount Group Operating Partnership LP (the Operating Partnership). The Company’s segments include New York, Washington, D.C. and San Francisco. As of December 31, 2016, the Company’s portfolio consisted of 13 Class A office properties aggregating approximately 10.8 million square feet that was 93.3% leased and 90.9% occupied. The Company also has an investment management business, where it serves as the general partner and property manager of certain private equity real estate funds for institutional investors and high-net-worth individuals.
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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