CBL & Associates Properties (NYSE: CBL) and VEREIT (NYSE:VER) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitabiliy, valuation, institutional ownership and risk.

Volatility and 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, VEREIT has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CBL & Associates Properties $1.00 billion 1.55 $657.85 million $0.59 15.32
VEREIT $1.43 billion 5.83 $1.14 billion ($0.11) -77.81

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

Profitability

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

Net Margins Return on Equity Return on Assets
CBL & Associates Properties 14.88% 9.43% 2.05%
VEREIT -2.72% -0.44% -0.25%

Insider & Institutional Ownership

90.5% of CBL & Associates Properties shares are owned by institutional investors. Comparatively, 84.8% of VEREIT shares are owned by institutional investors. 11.7% of CBL & Associates Properties shares are owned by company insiders. Comparatively, 0.1% of VEREIT shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for CBL & Associates Properties and VEREIT, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CBL & Associates Properties 1 7 2 0 2.10
VEREIT 1 2 4 0 2.43

CBL & Associates Properties presently has a consensus target price of $10.96, indicating a potential upside of 21.29%. VEREIT has a consensus target price of $9.88, indicating a potential upside of 15.36%. Given CBL & Associates Properties’ higher possible upside, analysts plainly believe CBL & Associates Properties is more favorable than VEREIT.

Dividends

CBL & Associates Properties pays an annual dividend of $1.06 per share and has a dividend yield of 11.7%. VEREIT pays an annual dividend of $0.55 per share and has a dividend yield of 6.4%. CBL & Associates Properties pays out 179.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. VEREIT pays out -500.0% of its earnings in the form of a dividend.

Summary

CBL & Associates Properties beats VEREIT on 9 of the 15 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 VEREIT

VEREIT, Inc. is a full-service real estate operating company. The Company operates through two business segments: real estate investment (REI) segment and investment management segment, Cole Capital. As of December 31, 2016, through its REI segment, the Company owned and managed a portfolio of 4,142 retail, restaurant, office and industrial real estate properties with an aggregate of 93.3 million square feet, which are located in 49 states, Puerto Rico and Canada. Through its Cole Capital segment, the Company is responsible for raising capital for and managing the affairs of certain non-listed real estate investment trusts (the Cole REITs) on a day-to-day basis, identifying and making acquisitions and investments on the Cole REITs’ behalf. The Cole Capital segment sponsors and manages direct investment real estate programs, which primarily include over four publicly registered, non-traded REITs.

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