One Liberty Properties (NYSE: OLP) and RAIT Financial Trust (NYSE:RAS) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.
Valuation & Earnings
This table compares One Liberty Properties and RAIT Financial Trust’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|One Liberty Properties||$70.59 million||6.83||$24.42 million||$1.31||19.60|
|RAIT Financial Trust||$173.61 million||0.22||$25.34 million||($1.80)||-0.23|
Institutional and Insider Ownership
41.6% of One Liberty Properties shares are held by institutional investors. Comparatively, 57.9% of RAIT Financial Trust shares are held by institutional investors. 8.6% of One Liberty Properties shares are held by company insiders. Comparatively, 1.3% of RAIT Financial Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a breakdown of current ratings and price targets for One Liberty Properties and RAIT Financial Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|One Liberty Properties||0||3||0||0||2.00|
|RAIT Financial Trust||1||3||0||0||1.75|
One Liberty Properties presently has a consensus price target of $25.25, indicating a potential downside of 1.67%. RAIT Financial Trust has a consensus price target of $1.43, indicating a potential upside of 247.56%. Given RAIT Financial Trust’s higher possible upside, analysts plainly believe RAIT Financial Trust is more favorable than One Liberty Properties.
One Liberty Properties pays an annual dividend of $1.72 per share and has a dividend yield of 6.7%. RAIT Financial Trust pays an annual dividend of $0.20 per share and has a dividend yield of 48.8%. One Liberty Properties pays out 131.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. RAIT Financial Trust pays out -11.1% of its earnings in the form of a dividend. One Liberty Properties has increased its dividend for 4 consecutive years. RAIT Financial Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk & Volatility
One Liberty Properties has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, RAIT Financial Trust has a beta of 1.66, suggesting that its share price is 66% more volatile than the S&P 500.
This table compares One Liberty Properties and RAIT Financial Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|One Liberty Properties||32.44%||8.31%||3.30%|
|RAIT Financial Trust||-137.66%||-0.59%||-0.08%|
One Liberty Properties beats RAIT Financial Trust on 8 of the 15 factors compared between the two stocks.
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.
RAIT Financial Trust Company Profile
RAIT Financial Trust (RAIT) is a real estate investment trust (REIT). The Company focuses on providing commercial real estate (CRE) financing throughout the United States. The core of its business is a full service CRE lending platform focused on first lien loans. It offers customized lending solutions to meet borrower needs and internal credit goals. It offers personalized middle-market financing solutions and a complement of lending products for CRE. The Company may also offer mezzanine loans and preferred equity interests in limited circumstances to support first lien loans. It is engaged in floating rate securitization programs and has access to multiple sources of funding, including senior debt, convertible securities, preferred securities and common securities. The Company also owns and manages a portfolio of CRE properties, and manages real estate assets for third parties. The Company is engaged in lending, owning and managing CRE assets throughout the United States.
Receive News & Ratings for One Liberty Properties Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for One Liberty Properties Inc. and related companies with MarketBeat.com's FREE daily email newsletter.