Analyzing CBL & Associates Properties (CBL) and New York REIT (NYRT)

CBL & Associates Properties (NYSE: CBL) and New York REIT (NYSE:NYRT) are both small-cap financials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Institutional & Insider Ownership

90.5% of CBL & Associates Properties shares are held by institutional investors. Comparatively, 69.8% of New York REIT shares are held by institutional investors. 11.7% of CBL & Associates Properties shares are held by company insiders. Comparatively, 0.2% of New York REIT shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares CBL & Associates Properties and New York REIT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CBL & Associates Properties 30.81% 10.08% 4.75%
New York REIT -51.49% -5.71% -2.70%

Dividends

CBL & Associates Properties pays an annual dividend of $1.06 per share and has a dividend yield of 12.6%. New York REIT does not pay a dividend. CBL & Associates Properties pays out 179.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. New York REIT has increased its dividend for 2 consecutive years.

Volatility & Risk

CBL & Associates Properties has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, New York REIT has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for CBL & Associates Properties and New York REIT, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CBL & Associates Properties 1 7 2 0 2.10
New York REIT 0 0 1 0 3.00

CBL & Associates Properties presently has a consensus target price of $10.96, indicating a potential upside of 30.53%. New York REIT has a consensus target price of $9.75, indicating a potential upside of 19.05%. Given CBL & Associates Properties’ higher probable upside, equities analysts clearly believe CBL & Associates Properties is more favorable than New York REIT.

Valuation & Earnings

This table compares CBL & Associates Properties and New York REIT’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CBL & Associates Properties $977.78 million 1.47 $626.07 million $0.59 14.24
New York REIT $174.99 million 7.86 $52.35 million ($0.50) -16.38

CBL & Associates Properties has higher revenue and earnings than New York REIT. New York REIT is trading at a lower price-to-earnings ratio than CBL & Associates Properties, indicating that it is currently the more affordable of the two stocks.

Summary

CBL & Associates Properties beats New York REIT on 12 of the 17 factors compared between the two stocks.

CBL & Associates Properties Company Profile

CBL & Associates Properties, Inc. is a self-managed, self-administered, integrated real estate investment trust. The Company owns, develops, acquires, leases, manages and operates regional shopping malls, open-air and mixed-use centers, outlet centers, associated centers, community centers and office properties. Its segments are Malls, Associated Centers, Community Centers and All Other. As of December 31, 2016, the Company owned a controlling interest in 65 Malls and non-controlling interests in nine Malls. As of December 31, 2016, the Company owned a controlling interest in 20 Associated Centers and a non-controlling interest in three Associated Centers. As of December 31, 2016, the Company owned a controlling interest in four Community Centers and a non-controlling interest in five Community Centers. As of December 31, 2016, the Company’s properties were located in 27 states, primarily in the southeastern and mid-western United States.

New York REIT Company Profile

New York REIT, Inc. is a real estate investment trust. The Company owns a portfolio of commercial real estate. The Company’s business is primarily conducted through New York Recovery Operating Partnership, L.P. As of December 31, 2016, the Company owned 19 properties, which aggregated 3.3 million rentable square feet. The Company holds interests in properties of various types, such as office, retail, hotel, parking and storage. The Company’s properties include Design Center, 416 Washington Street, 50 Varick Street, 1440 Broadway, One Worldwide Plaza, 256 West 38th Street, 229 West 36th Street, 333 West 34th Street, 367-387 Bleecker Street, 33 West 56th Street (garage) and 350 West 42nd Street.

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