Colony Capital (NYSE: CLNY) and BRT Apartments (NYSE:BRT) are both financials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, valuation and risk.
This table compares Colony Capital and BRT Apartments’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Colony Capital pays an annual dividend of $1.60 per share. BRT Apartments pays an annual dividend of $0.72 per share and has a dividend yield of 6.3%. Colony Capital pays out 192.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BRT Apartments pays out 248.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Colony Capital has increased its dividend for 8 consecutive years.
Institutional and Insider Ownership
94.1% of Colony Capital shares are owned by institutional investors. Comparatively, 20.9% of BRT Apartments shares are owned by institutional investors. 17.7% of Colony Capital shares are owned by insiders. Comparatively, 42.9% of BRT Apartments shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Colony Capital and BRT Apartments’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|BRT Apartments||$105.77 million||1.53||$13.60 million||$0.29||39.48|
BRT Apartments has higher revenue and earnings than Colony Capital. Colony Capital is trading at a lower price-to-earnings ratio than BRT Apartments, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and price targets for Colony Capital and BRT Apartments, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
BRT Apartments has a consensus target price of $12.08, suggesting a potential upside of 5.53%.
Colony Capital beats BRT Apartments on 7 of the 12 factors compared between the two stocks.
About Colony Capital
Colony Capital, Inc., formerly Colony Financial, Inc., is a global real estate and investment management company. The Company operates through five segments: Real Estate Equity, including Light industrial real estate assets and operating platform; Single-family residential rentals through an investment in Colony Starwood Homes and Other real estate equity investments; Real Estate Debt, which includes loan originations and acquisitions, and Investment Management, which includes investment management of the Company-sponsored funds and other investment vehicles. Through its global investment management business, it has over $18.8 billion of assets under management. Its business objective is to provide risk-adjusted returns to its investors through a diversified portfolio of direct and indirect real estate-related equity and real estate debt investments, and fee bearing management contracts on investment funds that it manages.
About BRT Apartments
BRT Apartments Corp. is a real estate investment trust (REIT). The Trust is focused on the ownership, operation and development of multi-family properties. These activities are primarily conducted through joint ventures in which the Trust has an equity interest in the entity owning the property. The Trust’s segments include Multi-Family Real Estate and Other Assets. The Multi-Family Real Estate segment includes the ownership, operation and development of multi-family properties. The Other Assets segment includes the ownership and operation of the Trust’s other real estate assets and a real estate loan. As of December 31, 2016, the Trust owned 30 multi-family properties with 8,624 units located in 11 states (including 271 units at a property in the lease up stage), and interests in two unconsolidated joint ventures. The Trust also owns and operates various other real estate assets.
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