Critical Contrast: Cedar Realty Trust (CDR) & General Growth Properties (GGP)
General Growth Properties (NYSE: GGP) and Cedar Realty Trust (NYSE:CDR) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.
Valuation and Earnings
This table compares General Growth Properties and Cedar Realty Trust’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|General Growth Properties||$2.51 billion||7.60||$1.76 billion||$1.19||18.20|
|Cedar Realty Trust||$147.44 million||3.23||$81.98 million||($0.06)||-96.48|
General Growth Properties has higher revenue and earnings than Cedar Realty Trust. Cedar Realty Trust is trading at a lower price-to-earnings ratio than General Growth Properties, indicating that it is currently the more affordable of the two stocks.
This table compares General Growth Properties and Cedar Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|General Growth Properties||50.01%||13.57%||5.07%|
|Cedar Realty Trust||6.58%||2.49%||0.77%|
Volatility and Risk
General Growth Properties has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500. Comparatively, Cedar Realty Trust has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.
General Growth Properties pays an annual dividend of $0.88 per share and has a dividend yield of 4.1%. Cedar Realty Trust pays an annual dividend of $0.20 per share and has a dividend yield of 3.5%. General Growth Properties pays out 73.9% of its earnings in the form of a dividend. Cedar Realty Trust pays out -333.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. General Growth Properties has increased its dividend for 5 consecutive years. General Growth Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of current ratings and recommmendations for General Growth Properties and Cedar Realty Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|General Growth Properties||1||5||4||0||2.30|
|Cedar Realty Trust||1||2||3||0||2.33|
General Growth Properties currently has a consensus price target of $24.80, indicating a potential upside of 14.50%. Cedar Realty Trust has a consensus price target of $6.25, indicating a potential upside of 7.94%. Given General Growth Properties’ higher possible upside, equities analysts plainly believe General Growth Properties is more favorable than Cedar Realty Trust.
Institutional and Insider Ownership
95.3% of General Growth Properties shares are owned by institutional investors. Comparatively, 92.2% of Cedar Realty Trust shares are owned by institutional investors. 35.6% of General Growth Properties shares are owned by insiders. Comparatively, 4.5% of Cedar Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
General Growth Properties beats Cedar Realty Trust on 13 of the 16 factors compared between the two stocks.
General Growth Properties Company Profile
GGP Inc. (GGP), formerly General Growth Properties, Inc., is a self-administered and self-managed real estate investment trust (REIT). The Company operates as a holding company, which is engaged in the operation, development and management of retail and other rental properties, primarily regional malls. As of December 31, 2016, the Company owned, either entirely or with joint venture partners, 127 retail properties located throughout the United States comprising approximately 125 million square feet of gross leasable area (GLA). As of December 31, 2016, the Company’s retail properties included 200 Lafayette, The Shoppes at Buckland Hills, Northridge Fashion Center, Brass Mill Center, Jordan Creek Town Center, Westroads Mall and Stonestown Galleria. The Company’s business is conducted through GGP Operating Partnership, LP (GGPOP), GGP Nimbus, LP (GGPN) and GGP Limited Partnership (GGPLP, and together with GGPN and GGPOP, the Operating Partnerships), subsidiaries of GGP.
Cedar Realty Trust Company Profile
Cedar Realty Trust, Inc. is a real estate investment trust (REIT). The Company focuses on ownership and operation of grocery-anchored shopping centers straddling the Washington District of Columbia (DC) to Boston corridor. As of December 31, 2016, the Company owned and managed a portfolio of 61 operating properties (excluding properties held for sale) totaling approximately 9.1 million square feet of gross leasable area (GLA). The Company focuses its investment activities on grocery-anchored shopping centers. The Company’s properties portfolio comprises 26 properties in Pennsylvania, eight properties in Massachusetts, seven properties in Connecticut, seven properties in Maryland / Washington, D.C, eight properties in Virginia, four properties in New Jersey and one property in New York. The Company’s 106 are going to expire in the year 2017. The Company conducts all of its businesses through the Cedar Realty Trust Partnership L.P. (the Operating Partnership).
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