Centerspace (NYSE:CSR – Get Free Report) and One Liberty Properties (NYSE:OLP – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.
Dividends
Centerspace pays an annual dividend of $3.00 per share and has a dividend yield of 4.9%. One Liberty Properties pays an annual dividend of $1.80 per share and has a dividend yield of 7.0%. Centerspace pays out -186.3% of its earnings in the form of a dividend. One Liberty Properties pays out 111.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Insider & Institutional Ownership
79.0% of Centerspace shares are owned by institutional investors. Comparatively, 36.2% of One Liberty Properties shares are owned by institutional investors. 0.9% of Centerspace shares are owned by insiders. Comparatively, 25.4% of One Liberty Properties shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Centerspace | 0 | 4 | 2 | 0 | 2.33 |
One Liberty Properties | 0 | 0 | 1 | 0 | 3.00 |
Centerspace currently has a consensus target price of $75.33, indicating a potential upside of 22.51%. One Liberty Properties has a consensus target price of $28.00, indicating a potential upside of 8.65%. Given Centerspace’s higher possible upside, equities analysts plainly believe Centerspace is more favorable than One Liberty Properties.
Profitability
This table compares Centerspace and One Liberty Properties’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Centerspace | -5.57% | -1.72% | -0.76% |
One Liberty Properties | 38.96% | 11.35% | 4.58% |
Earnings and Valuation
This table compares Centerspace and One Liberty Properties”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Centerspace | $258.64 million | 3.94 | $41.97 million | ($1.61) | -38.19 |
One Liberty Properties | $89.45 million | 6.16 | $29.61 million | $1.62 | 15.91 |
Centerspace has higher revenue and earnings than One Liberty Properties. Centerspace is trading at a lower price-to-earnings ratio than One Liberty Properties, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Centerspace has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, One Liberty Properties has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.
Summary
One Liberty Properties beats Centerspace on 10 of the 16 factors compared between the two stocks.
About Centerspace
Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, as of September 30, 2023, Centerspace owned interests in 71 apartment communities consisting of 12,785 apartment homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a Top Workplace for the fourth consecutive year in 2023 by the Minneapolis Star Tribune.
About One Liberty Properties
One Liberty Properties, Inc. is a real estate investment trust, which engages in acquisition, ownership, and management of the geographically diversified portfolio consisting primarily of industrial, retail, restaurant, health and fitness, and theater properties, many of which are subject to long-term leases. The properties in the firm’s portfolio include net leases, long-term lease, and scheduled rent increases. The company was founded in December 1982 and is headquartered in Great Neck, NY.
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