One Liberty Properties (NYSE: OLP) and Armada Hoffler Properties (NYSE:AHH) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.
Institutional and Insider Ownership
41.7% of One Liberty Properties shares are held by institutional investors. Comparatively, 81.4% of Armada Hoffler Properties shares are held by institutional investors. 8.6% of One Liberty Properties shares are held by company insiders. Comparatively, 20.9% of Armada Hoffler Properties shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares One Liberty Properties and Armada Hoffler Properties’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|One Liberty Properties||$74.78 million||5.99||$48.43 million||$1.17||20.56|
|Armada Hoffler Properties||$315.03 million||2.71||$65.61 million||$0.48||28.35|
Armada Hoffler Properties has higher revenue and earnings than One Liberty Properties. One Liberty Properties is trading at a lower price-to-earnings ratio than Armada Hoffler Properties, indicating that it is currently the more affordable of the two stocks.
This table compares One Liberty Properties and Armada Hoffler Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|One Liberty Properties||29.14%||7.49%||2.92%|
|Armada Hoffler Properties||8.04%||7.02%||2.58%|
Volatility & Risk
One Liberty Properties has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Armada Hoffler Properties has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500.
One Liberty Properties pays an annual dividend of $1.72 per share and has a dividend yield of 7.1%. Armada Hoffler Properties pays an annual dividend of $0.76 per share and has a dividend yield of 5.6%. One Liberty Properties pays out 147.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Armada Hoffler Properties pays out 158.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. One Liberty Properties has raised its dividend for 3 consecutive years and Armada Hoffler Properties has raised its dividend for 4 consecutive years. One Liberty Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a breakdown of current ratings and price targets for One Liberty Properties and Armada Hoffler Properties, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|One Liberty Properties||0||2||0||0||2.00|
|Armada Hoffler Properties||0||2||4||0||2.67|
One Liberty Properties currently has a consensus target price of $24.75, indicating a potential upside of 2.87%. Armada Hoffler Properties has a consensus target price of $14.75, indicating a potential upside of 8.38%. Given Armada Hoffler Properties’ stronger consensus rating and higher probable upside, analysts plainly believe Armada Hoffler Properties is more favorable than One Liberty Properties.
Armada Hoffler Properties beats One Liberty Properties on 9 of the 17 factors compared between the two stocks.
About One Liberty Properties
One Liberty Properties, Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company acquires, owns and manages a geographically diversified portfolio consisting of retail, industrial, flex, and health and fitness properties. As of December 31, 2016, the Company owned 114 properties and participated in joint ventures that own five properties. These 119 properties are located in 30 states and have an aggregate of approximately 10.1 million square feet (including an aggregate of approximately 1.2 million square feet at properties owned by its joint ventures). As of December 31, 2016, the Company’s property locations included Fort Mill, South Carolina; Royersford, Pennsylvania; Round Rock, Texas; W.Hartford, Connecticut; Delport, Missouri; Brooklyn, New York City; Lakemoor, Illinois; Tucker, Georgia; Cedar Park, Texas; Lake Charles, Louisiana; Sandy Springs, Georgia; Wichita, Kansas; Melville, New York; Ronkonkoma, New York, and Niles, Illinois.
About Armada Hoffler Properties
Armada Hoffler Properties, Inc. is a real estate company. The Company is engaged in developing, building, owning and managing institutional-grade office, retail and multifamily properties in various markets throughout the Mid-Atlantic and Southeastern United States. In addition to the ownership of its operating property portfolio, the Company develops and builds properties for its own account and through joint ventures between the Company and unaffiliated partners. It also provides general contracting services to third parties. Its construction and development experience includes mid- and high-rise office buildings, retail strip malls and retail power centers, multifamily apartment communities, hotels and conference centers, single- and multi-tenant industrial, distribution and manufacturing facilities, educational, medical and special purpose facilities, government projects, parking garages and mixed-use town centers.
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