Reviewing EPR Properties (EPR) and Urstadt Biddle Properties (UBA)

EPR Properties (NYSE: EPR) and Urstadt Biddle Properties (NYSE:UBA) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.

Dividends

EPR Properties pays an annual dividend of $4.08 per share and has a dividend yield of 6.1%. Urstadt Biddle Properties pays an annual dividend of $1.06 per share and has a dividend yield of 4.6%. EPR Properties pays out 121.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Urstadt Biddle Properties pays out 99.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EPR Properties has raised its dividend for 17 consecutive years and Urstadt Biddle Properties has raised its dividend for 6 consecutive years. EPR Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

88.8% of EPR Properties shares are held by institutional investors. Comparatively, 60.1% of Urstadt Biddle Properties shares are held by institutional investors. 1.5% of EPR Properties shares are held by company insiders. Comparatively, 20.1% of Urstadt Biddle Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares EPR Properties and Urstadt Biddle Properties’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EPR Properties $493.24 million 10.04 $224.98 million $3.36 20.01
Urstadt Biddle Properties $116.79 million 7.74 $33.71 million $1.07 21.45

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

Analyst Ratings

This is a summary of recent recommendations for EPR Properties and Urstadt Biddle Properties, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EPR Properties 1 1 2 0 2.25
Urstadt Biddle Properties 0 3 0 0 2.00

EPR Properties currently has a consensus target price of $78.80, suggesting a potential upside of 17.23%. Urstadt Biddle Properties has a consensus target price of $21.50, suggesting a potential downside of 6.32%. Given EPR Properties’ stronger consensus rating and higher probable upside, equities research analysts clearly believe EPR Properties is more favorable than Urstadt Biddle Properties.

Profitability

This table compares EPR Properties and Urstadt Biddle Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EPR Properties 45.71% 10.01% 4.65%
Urstadt Biddle Properties 44.45% 13.62% 5.65%

Volatility & Risk

EPR Properties has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, Urstadt Biddle Properties has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500.

Summary

EPR Properties beats Urstadt Biddle Properties on 12 of the 17 factors compared between the two stocks.

EPR Properties Company Profile

EPR Properties is a specialty real estate investment trust. The Company’s investment portfolio includes primarily entertainment, education and recreation properties. The Company’s segments include Entertainment, Education, Recreation and Other. The Entertainment segment consists of investments in megaplex theatres, entertainment retail centers, family entertainment centers and other retail parcels. The Education segment consists of investments in public charter schools, early education centers and K-12 private schools. The Recreation segment consists of investments in ski areas, waterparks, golf entertainment complexes and other recreation. The Other segment consists primarily of land under ground lease, property under development and land held for development. As of December 31, 2016, the Company’s owned real estate portfolio of megaplex theatres consisted of approximately 10.6 million square feet.

Urstadt Biddle Properties Company Profile

Urstadt Biddle Properties Inc. is a real estate investment trust, which is engaged in the acquisition, ownership and management of commercial real estate. The Company owns Ridgeway Shopping Center (Ridgeway) property, which is located in Stamford, Connecticut. Its segments include Ridgeway and All Other Operating Segments. Its primary business is the ownership of real estate investments with primary emphasis on properties in the metropolitan New York tri-state area outside of the City of New York. As of October 31, 2016, the Company’s properties consisted principally of neighborhood and community shopping centers and seven office buildings. As of March 30, 2017, the Company owned or had equity interests in 80 properties, including neighborhood and community shopping centers, office buildings, single tenant retail or restaurant properties and office/retail mixed-use properties located in four states throughout the United States.

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