Critical Review: Clipper Realty (CLPR) and Starwood Waypoint Homes (SFR)

Clipper Realty (NYSE: CLPR) and Starwood Waypoint Homes (NYSE:SFR) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.

Insider & Institutional Ownership

56.9% of Clipper Realty shares are held by institutional investors. 5.0% of Starwood Waypoint Homes shares are held 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.

Earnings and Valuation

This table compares Clipper Realty and Starwood Waypoint Homes’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Clipper Realty $93.00 million 1.58 -$3.73 million ($0.20) -41.30
Starwood Waypoint Homes $575.68 million 8.28 -$81.26 million ($0.28) -132.61

Clipper Realty has higher earnings, but lower revenue than Starwood Waypoint Homes. Starwood Waypoint Homes is trading at a lower price-to-earnings ratio than Clipper Realty, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Clipper Realty and Starwood Waypoint Homes’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Clipper Realty -2.66% -0.74% -0.13%
Starwood Waypoint Homes -13.10% -2.63% -1.19%

Analyst Ratings

This is a breakdown of current recommendations for Clipper Realty and Starwood Waypoint Homes, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Clipper Realty 0 0 4 0 3.00
Starwood Waypoint Homes 0 4 6 0 2.60

Clipper Realty currently has a consensus price target of $15.75, suggesting a potential upside of 90.68%. Starwood Waypoint Homes has a consensus price target of $37.50, suggesting a potential upside of 1.00%. Given Clipper Realty’s stronger consensus rating and higher possible upside, research analysts clearly believe Clipper Realty is more favorable than Starwood Waypoint Homes.

Dividends

Clipper Realty pays an annual dividend of $0.38 per share and has a dividend yield of 4.6%. Starwood Waypoint Homes pays an annual dividend of $0.88 per share and has a dividend yield of 2.4%. Clipper Realty pays out -190.0% of its earnings in the form of a dividend. Starwood Waypoint Homes pays out -314.3% 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.

Summary

Clipper Realty beats Starwood Waypoint Homes on 10 of the 15 factors compared between the two stocks.

About Clipper Realty

Clipper Realty, Inc. is a real estate investment trust, which acquires, owns, manages, operates and repositions multi-family residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn. The Company’s segments include Commercial and Residential. As of June 30, 2016, it owned two residential/retail rental properties at 50 Murray Street and 53 Park Place in the Tribeca neighborhood of Manhattan, referred to as the Tribeca House properties. As of June 30, 2016, it also owned a residential property complex in the East Flatbush neighborhood of Brooklyn consisting of 59 buildings, referred to as the Flatbush Gardens properties or complex. As of June 30, 2016, it owned two primarily commercial properties in Downtown Brooklyn (one of which included 36 residential apartment units), referred to as the 141 Livingston Street property and the 250 Livingston Street property, and also owned the Aspen property.

About Starwood Waypoint Homes

Starwood Waypoint Homes, formerly Colony Starwood Homes, is an internally managed real estate investment trust (REIT). The Company was formed primarily to acquire, renovate, lease and manage residential assets in select markets across the United States. It is focused on acquiring single-family rental (SFR) homes through a variety of channels, renovating these homes to the extent necessary and leasing them to qualified residents. The Company operates through two segments, which are represented by its portfolio of SFR homes and its portfolio of NPLs owned in the joint venture with Prime Asset Fund VI, LLC (Prime). The Company identifies and pursues individual home acquisition opportunities through various sources, including multiple listing services (MLS) listings, foreclosure auctions and short sales. As of December 31, 2016, its SFR portfolio consisted of 31,684 owned homes, including 31,065 rental homes and 619 homes that it does not intend to hold for the long term.

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

Latest News

Leave a Reply