GGP (NYSE: CLI) and Mack Cali Realty (NYSE:CLI) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Institutional & Insider Ownership

86.2% of GGP shares are held by institutional investors. Comparatively, 98.9% of Mack Cali Realty shares are held by institutional investors. 35.0% of GGP shares are held by company insiders. Comparatively, 6.8% of Mack Cali Realty 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.

Earnings & Valuation

This table compares GGP and Mack Cali Realty’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GGP $2.33 billion 9.12 $657.33 million $1.57 14.05
Mack Cali Realty $616.20 million 3.18 $23.18 million $2.23 9.73

GGP has higher revenue and earnings than Mack Cali Realty. Mack Cali Realty is trading at a lower price-to-earnings ratio than GGP, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for GGP and Mack Cali Realty, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GGP 0 5 4 0 2.44
Mack Cali Realty 0 4 1 0 2.20

GGP presently has a consensus price target of $25.33, suggesting a potential upside of 14.84%. Mack Cali Realty has a consensus price target of $22.80, suggesting a potential upside of 5.07%. Given GGP’s stronger consensus rating and higher probable upside, research analysts clearly believe GGP is more favorable than Mack Cali Realty.

Volatility & Risk

GGP has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Mack Cali Realty has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.

Profitability

This table compares GGP and Mack Cali Realty’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GGP 24.46% 6.98% 2.53%
Mack Cali Realty 13.89% 4.70% 1.61%

Dividends

GGP pays an annual dividend of $0.88 per share and has a dividend yield of 4.0%. Mack Cali Realty pays an annual dividend of $0.80 per share and has a dividend yield of 3.7%. GGP pays out 56.1% of its earnings in the form of a dividend. Mack Cali Realty pays out 35.9% 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. GGP has increased its dividend for 6 consecutive years and Mack Cali Realty has increased its dividend for 2 consecutive years. GGP is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

GGP beats Mack Cali Realty on 13 of the 17 factors compared between the two stocks.

About GGP

GGP Inc. is an S&P 500 company focused exclusively on owning, managing, leasing and redeveloping high-quality retail properties throughout the United States. GGP is headquartered in Chicago, Illinois, and publicly traded on the NYSE under the symbol GGP.

About Mack Cali Realty

Mack-Cali Realty Corporation is fully-integrated and self-managed company, Mack-Cali has provided world-class management, leasing, and development services throughout New Jersey and the surrounding region for two decades. By regularly investing in its properties and innovative lifestyle amenity packages, Mack-Cali creates environments that empower tenants and residents to reimagine the way they work and live.

Receive News & Ratings for GGP Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for GGP and related companies with MarketBeat.com's FREE daily email newsletter.