Whitestone REIT (NYSE: WSR) and One Liberty Properties (NYSE:OLP) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.
This table compares Whitestone REIT and One Liberty 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%|
Whitestone REIT pays an annual dividend of $1.14 per share and has a dividend yield of 8.9%. One Liberty Properties pays an annual dividend of $1.72 per share and has a dividend yield of 7.0%. Whitestone REIT pays out 877.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Whitestone REIT has increased its dividend for 4 consecutive years. Whitestone REIT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of current ratings for Whitestone REIT and One Liberty Properties, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|One Liberty Properties||0||2||0||0||2.00|
Whitestone REIT presently has a consensus price target of $14.67, suggesting a potential upside of 14.14%. One Liberty Properties has a consensus price target of $24.75, suggesting a potential upside of 1.39%. Given Whitestone REIT’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Whitestone REIT is more favorable than One Liberty Properties.
Valuation and Earnings
This table compares Whitestone REIT and One Liberty Properties’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Whitestone REIT||$112.35 million||4.41||$49.43 million||$0.13||98.85|
|One Liberty Properties||$74.78 million||6.08||$48.43 million||$1.17||20.86|
Whitestone REIT has higher revenue and earnings than One Liberty Properties. One Liberty Properties is trading at a lower price-to-earnings ratio than Whitestone REIT, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
43.7% of Whitestone REIT shares are held by institutional investors. Comparatively, 41.7% of One Liberty Properties shares are held by institutional investors. 5.3% of Whitestone REIT shares are held by insiders. Comparatively, 8.6% of One Liberty Properties shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk & Volatility
Whitestone REIT has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, One Liberty Properties has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.
Whitestone REIT beats One Liberty Properties on 9 of the 17 factors compared between the two stocks.
Whitestone REIT Company Profile
Whitestone REIT is a real estate investment trust. The Company is engaged in owning and operating commercial properties in culturally diverse markets in various metropolitan areas. The Company’s acquisition targets are located in densely populated, culturally diverse neighborhoods, primarily in and around Austin, Chicago, Dallas-Fort Worth, Houston, Phoenix and San Antonio. As of December 31, 2016, the Company owned or held interests in 69 commercial properties, including 15 properties in Houston, five properties in Dallas-Fort Worth, three properties in San Antonio, four properties in Austin, 27 properties in the Scottsdale and Phoenix, Arizona metropolitan areas, and one property in Buffalo Grove, Illinois, a suburb of Chicago. As of December 31, 2016, the Company’s properties included Heritage Trace Plaza, Headquarters Village, La Mirada, The Marketplace at Central, Mercado at Scottsdale Ranch, Paradise Plaza, Parkside Village North, Pima Norte and Quinlan Crossing.
One Liberty Properties Company Profile
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.
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