Analyzing Taubman Centers (TCO) & Cedar Realty Trust (CDR)
Taubman Centers (NYSE: TCO) and Cedar Realty Trust (NYSE:CDR) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
This table compares Taubman Centers and Cedar Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cedar Realty Trust||11.42%||4.18%||1.34%|
92.7% of Cedar Realty Trust shares are owned by institutional investors. 31.2% of Taubman Centers shares are owned by company insiders. Comparatively, 4.5% of Cedar Realty Trust shares are owned 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 is a breakdown of current ratings and price targets for Taubman Centers and Cedar Realty Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cedar Realty Trust||1||2||3||0||2.33|
Taubman Centers presently has a consensus price target of $66.17, suggesting a potential upside of 12.62%. Cedar Realty Trust has a consensus price target of $5.75, suggesting a potential downside of 6.05%. Given Taubman Centers’ higher probable upside, analysts plainly believe Taubman Centers is more favorable than Cedar Realty Trust.
Earnings and Valuation
This table compares Taubman Centers and Cedar Realty Trust’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Taubman Centers||$612.56 million||5.82||$132.61 million||$1.05||55.95|
|Cedar Realty Trust||$151.09 million||3.70||$8.94 million||($0.07)||-87.43|
Taubman Centers has higher revenue and earnings than Cedar Realty Trust. Cedar Realty Trust is trading at a lower price-to-earnings ratio than Taubman Centers, indicating that it is currently the more affordable of the two stocks.
Taubman Centers pays an annual dividend of $2.50 per share and has a dividend yield of 4.3%. Cedar Realty Trust pays an annual dividend of $0.20 per share and has a dividend yield of 3.3%. Taubman Centers pays out 238.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cedar Realty Trust pays out -285.7% of its earnings in the form of a dividend. Taubman Centers has increased its dividend for 7 consecutive years. Taubman Centers is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk & Volatility
Taubman Centers has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Cedar Realty Trust has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.
Taubman Centers beats Cedar Realty Trust on 11 of the 17 factors compared between the two stocks.
About Taubman Centers
Taubman Centers, Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company’s segment is focused on owning, developing and managing regional shopping centers. The Taubman Realty Group Limited Partnership (the Operating Partnership or TRG) is majority-owned partnership subsidiary of the Company that owns direct or indirect interests in all of its real estate properties. The Company owns, leases, acquires, disposes of, develops, expands and manages regional and super-regional shopping centers and interests therein. Its owned portfolio of operating centers as of December 31, 2016 consisted of 23 urban and suburban shopping centers operating in 11 the United States states, Puerto Rico, South Korea, and China. The consolidated businesses consist of shopping centers and entities that are controlled by ownership or contractual agreements, The Taubman Company LLC (Manager), and Taubman Properties Asia LLC and its subsidiaries (Taubman Asia).
About Cedar Realty Trust
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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