Financial Survey: Armada Hoffler Properties (NYSE:AHRT) versus HG (OTCMKTS:STLY)

Armada Hoffler Properties (NYSE:AHRT) and HG (OTCMKTS:STLY) are both small-cap real estate companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Profitability

This table compares Armada Hoffler Properties and HG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Armada Hoffler Properties	-18.23%	-0.79%	-0.20%
HG	14.15%	5.46%	4.29%

Institutional & Insider Ownership

66.3% of Armada Hoffler Properties shares are held by institutional investors. Comparatively, 1.7% of HG shares are held by institutional investors. 9.3% of Armada Hoffler Properties shares are held by insiders. Comparatively, 75.7% of HG shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Armada Hoffler Properties has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, HG has a beta of 0.16, meaning that its share price is 84% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Armada Hoffler Properties and HG, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Armada Hoffler Properties	1	2	1	1	2.40
HG	0	0	0	0	0.00

Armada Hoffler Properties presently has a consensus target price of $7.50, suggesting a potential upside of 16.64%. Given Armada Hoffler Properties’ stronger consensus rating and higher possible upside, analysts clearly believe Armada Hoffler Properties is more favorable than HG.

Valuation & Earnings

This table compares Armada Hoffler Properties and HG”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Armada Hoffler Properties	$285.20 million	1.68	$5.60 million	($0.63)	-10.21
HG	$14.74 million	1.28	$1.53 million	$0.36	10.42

Armada Hoffler Properties has higher revenue and earnings than HG. Armada Hoffler Properties is trading at a lower price-to-earnings ratio than HG, indicating that it is currently the more affordable of the two stocks.

Summary

Armada Hoffler Properties beats HG on 9 of the 15 factors compared between the two stocks.

About Armada Hoffler Properties

Armada Hoffler Properties, Inc. (the “Company”) is a vertically integrated, self-managed real estate investment trust (“REIT”) with over four decades of experience developing, building, acquiring, and managing high-quality retail, office, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. In addition to the ownership of the Company’s operating property portfolio, the Company develops and builds properties for its own account and through joint ventures between the Company and unaffiliated partners and also invests in development projects through real estate financing arrangements. The Company also provides general construction and development services to third-party clients. The Company’s construction and development experience includes mid- and high-rise office buildings, retail strip malls, 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. The Company is the sole general partner of Armada Hoffler, L.P. (the “Operating Partnership”) and, as of March 31, 2024, owned 75.5% of the economic interest in the Operating Partnership, of which 0.1% is held as general partnership units. The operations of the Company are conducted primarily through the Operating Partnership and the wholly owned subsidiaries thereof.

About HG

HG Holdings, Inc. engages in the title insurance and real estate businesses in the United States. It operates through four segments: Title Insurance Services, Reinsurance, Management Services, and Real Estate. The company provides title insurance, closing and/or escrow, and similar or related services in connection with residential and commercial real estate transactions. It also owns and operates a portfolio of single-tenant properties leased for the occupancy by U.S. government tenant agencies and sub-agencies, such as the Federal Bureau of Investigation, the Department of Veterans affairs, the Drug Enforcement Administration, Immigration & Customs Enforcement, the Social Security Administration, and the Department of Transportation. In addition, the company provides excess-of-loss reinsurance coverage related to catastrophic weather risk in Texas; and management advisory services, such as formation, operational, and restructuring services. The company was formerly known as Stanley Furniture Company, Inc. and changed its name to HG Holdings, Inc. in March 2018. HG Holdings, Inc. was incorporated in 1984 and is headquartered in Charlotte, North Carolina.