Head-To-Head Survey: CBL & Associates Properties (CBL) vs. Government Properties Income Trust (GOV)

CBL & Associates Properties (NYSE: CBL) and Government Properties Income Trust (NASDAQ:GOV) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.

Earnings & Valuation

How to Become a New Pot Stock Millionaire

This table compares CBL & Associates Properties and Government Properties Income Trust’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CBL & Associates Properties $927.25 million 0.86 $120.94 million $0.45 10.29
Government Properties Income Trust $316.53 million 4.28 $12.09 million $0.19 72.00

CBL & Associates Properties has higher revenue and earnings than Government Properties Income Trust. CBL & Associates Properties is trading at a lower price-to-earnings ratio than Government Properties Income Trust, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

CBL & Associates Properties has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Government Properties Income Trust has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for CBL & Associates Properties and Government Properties Income Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CBL & Associates Properties 8 4 0 0 1.33
Government Properties Income Trust 3 1 2 0 1.83

CBL & Associates Properties currently has a consensus price target of $6.97, suggesting a potential upside of 50.51%. Government Properties Income Trust has a consensus price target of $18.33, suggesting a potential upside of 34.02%. Given CBL & Associates Properties’ higher probable upside, analysts clearly believe CBL & Associates Properties is more favorable than Government Properties Income Trust.

Insider and Institutional Ownership

79.6% of CBL & Associates Properties shares are owned by institutional investors. Comparatively, 58.1% of Government Properties Income Trust shares are owned by institutional investors. 11.7% of CBL & Associates Properties shares are owned by insiders. Comparatively, 2.7% of Government Properties Income Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares CBL & Associates Properties and Government Properties Income Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CBL & Associates Properties 13.04% 8.14% 1.77%
Government Properties Income Trust 3.82% 1.22% 0.46%

Dividends

CBL & Associates Properties pays an annual dividend of $0.80 per share and has a dividend yield of 17.3%. Government Properties Income Trust pays an annual dividend of $1.72 per share and has a dividend yield of 12.6%. CBL & Associates Properties pays out 177.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Government Properties Income Trust pays out 905.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CBL & Associates Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

CBL & Associates Properties beats Government Properties Income Trust on 12 of the 16 factors compared between the two stocks.

About CBL & Associates Properties

CBL & Associates Properties, Inc. is a self-managed, self-administered, integrated real estate investment trust. The Company owns, develops, acquires, leases, manages and operates regional shopping malls, open-air and mixed-use centers, outlet centers, associated centers, community centers and office properties. Its segments are Malls, Associated Centers, Community Centers and All Other. As of December 31, 2016, the Company owned a controlling interest in 65 Malls and non-controlling interests in nine Malls. As of December 31, 2016, the Company owned a controlling interest in 20 Associated Centers and a non-controlling interest in three Associated Centers. As of December 31, 2016, the Company owned a controlling interest in four Community Centers and a non-controlling interest in five Community Centers. As of December 31, 2016, the Company’s properties were located in 27 states, primarily in the southeastern and mid-western United States.

About Government Properties Income Trust

Government Properties Income Trust is a real estate investment trust (REIT). The Company operates through two segments: ownership of properties that are primarily leased to government tenants and its equity method investment in Select Income REIT (SIR). The Company’s properties are located in areas, including Alabama, Arizona, California, Colorado, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, New Hampshire, New Jersey and New Mexico. As of December 31, 2016, the Company owned 73 properties (95 buildings). As of December 31, 2016, the Company’s properties were located in 31 states and the District of Columbia, and contained approximately 11.4 million rentable square feet.

Receive News & Ratings for CBL & Associates Properties Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CBL & Associates Properties and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply