Analyzing Cedar Realty Trust (CDR) & DDR (DDR)
Cedar Realty Trust (NYSE: CDR) and DDR (NYSE:DDR) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.
Risk & Volatility
Cedar Realty Trust has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, DDR has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500.
Cedar Realty Trust pays an annual dividend of $0.20 per share and has a dividend yield of 4.9%. DDR pays an annual dividend of $0.76 per share and has a dividend yield of 10.7%. Cedar Realty Trust pays out -666.7% of its earnings in the form of a dividend. DDR pays out -1,900.0% 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. DDR has raised its dividend for 7 consecutive years. DDR is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of current ratings and price targets for Cedar Realty Trust and DDR, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cedar Realty Trust||1||2||3||0||2.33|
Cedar Realty Trust currently has a consensus price target of $5.69, indicating a potential upside of 38.05%. DDR has a consensus price target of $11.13, indicating a potential upside of 57.36%. Given DDR’s higher possible upside, analysts clearly believe DDR is more favorable than Cedar Realty Trust.
This table compares Cedar Realty Trust and DDR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cedar Realty Trust||13.11%||4.71%||1.53%|
Insider & Institutional Ownership
95.1% of Cedar Realty Trust shares are held by institutional investors. Comparatively, 78.9% of DDR shares are held by institutional investors. 4.5% of Cedar Realty Trust shares are held by insiders. Comparatively, 16.1% of DDR shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Cedar Realty Trust and DDR’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cedar Realty Trust||$146.01 million||2.58||$19.14 million||($0.03)||-137.33|
|DDR||$969.51 million||2.69||$60.01 million||($0.04)||-176.75|
DDR has higher revenue and earnings than Cedar Realty Trust. DDR is trading at a lower price-to-earnings ratio than Cedar Realty Trust, indicating that it is currently the more affordable of the two stocks.
DDR beats Cedar Realty Trust on 9 of the 17 factors compared between the two stocks.
About Cedar Realty Trust
Cedar Realty Trust, Inc. is a real estate investment trust (REIT). The Company focuses on ownership and operation of grocery-anchored shopping centers straddling the Washington District of Columbia (DC) to Boston corridor. As of December 31, 2016, the Company owned and managed a portfolio of 61 operating properties (excluding properties held for sale) totaling approximately 9.1 million square feet of gross leasable area (GLA). The Company focuses its investment activities on grocery-anchored shopping centers. The Company’s properties portfolio comprises 26 properties in Pennsylvania, eight properties in Massachusetts, seven properties in Connecticut, seven properties in Maryland / Washington, D.C, eight properties in Virginia, four properties in New Jersey and one property in New York. The Company’s 106 are going to expire in the year 2017. The Company conducts all of its businesses through the Cedar Realty Trust Partnership L.P. (the Operating Partnership).
DDR Corp. is a self-administered and self-managed real estate investment trust. It operates through two segments: shopping centers and loan investments. It is in the business of acquiring, owning, developing, redeveloping, expanding, leasing and managing shopping centers. As of December 31, 2016, it owned and managed approximately 106 million total square feet of gross leasable area (GLA). As of December 31, 2016, the portfolio properties included 319 shopping centers (including 152 centers owned through joint ventures). As of December 31, 2016, the portfolio properties also included over 650 acres of undeveloped land, including parcels located adjacent to certain of the shopping centers. As of December 31, 2016, the portfolio properties aggregated to 75.8 million square feet of Company-owned GLA located in 35 states, plus Puerto Rico. These centers are in the Southeast and Midwest, with significant concentrations in Florida, Georgia, Ohio and North Carolina, as well as Puerto Rico.
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