Critical Analysis: Highwoods Properties (HIW) vs. Cedar Realty Trust (CDR)
Highwoods Properties (NYSE:HIW) and Cedar Realty Trust (NYSE:CDR) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitability, valuation, risk, institutional ownership and dividends.
Volatility & Risk
Highwoods Properties has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Cedar Realty Trust has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.
This is a summary of current ratings and target prices for Highwoods Properties and Cedar Realty Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cedar Realty Trust||1||1||2||0||2.25|
Highwoods Properties presently has a consensus price target of $52.80, indicating a potential upside of 19.05%. Cedar Realty Trust has a consensus price target of $5.17, indicating a potential upside of 37.41%. Given Cedar Realty Trust’s higher probable upside, analysts clearly believe Cedar Realty Trust is more favorable than Highwoods Properties.
Highwoods Properties pays an annual dividend of $1.85 per share and has a dividend yield of 4.2%. Cedar Realty Trust pays an annual dividend of $0.20 per share and has a dividend yield of 5.3%. Highwoods Properties pays out 56.4% of its earnings in the form of a dividend. Cedar Realty Trust pays out 36.4% 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. Cedar Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation & Earnings
This table compares Highwoods Properties and Cedar Realty Trust’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Highwoods Properties||$702.74 million||6.53||$185.36 million||$3.28||13.52|
|Cedar Realty Trust||$146.01 million||2.35||$19.14 million||$0.55||6.84|
Highwoods Properties has higher revenue and earnings than Cedar Realty Trust. Cedar Realty Trust is trading at a lower price-to-earnings ratio than Highwoods Properties, indicating that it is currently the more affordable of the two stocks.
This table compares Highwoods Properties 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||3.16%||1.17%||0.39%|
Insider and Institutional Ownership
92.1% of Highwoods Properties shares are held by institutional investors. Comparatively, 92.7% of Cedar Realty Trust shares are held by institutional investors. 2.0% of Highwoods Properties shares are held by company insiders. Comparatively, 4.4% of Cedar Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Highwoods Properties beats Cedar Realty Trust on 10 of the 16 factors compared between the two stocks.
Highwoods Properties Company Profile
Highwoods Properties, Inc., headquartered in Raleigh, is a publicly-traded (NYSE:HIW) real estate investment trust (REIT) and a member of the S&P MidCap 400 Index. The Company is a fullyintegrated office REIT that owns, develops, acquires, leases and manages properties primarily in the best business districts (BBDs) of Atlanta, Greensboro, Memphis, Nashville, Orlando, Pittsburgh, Raleigh, Richmond and Tampa.
Cedar Realty Trust Company Profile
Cedar Realty Trust, Inc. is a fully-integrated real estate investment trust which focuses on the ownership, operation and redevelopment of grocery-anchored shopping centers in high-density urban markets from Washington, D.C. to Boston. The Company's portfolio (excluding properties treated as "held for sale") comprises 58 properties, with approximately 8.7 million square feet of gross leasable area.
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