Monmouth Real Estate Investment Corporation (NYSE: MNR) and Brookfield Canada Office Properties (NYSE:BOXC) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, earnings, dividends, risk and valuation.

Risk & Volatility

Monmouth Real Estate Investment Corporation has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500. Comparatively, Brookfield Canada Office Properties has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.

Profitability

This table compares Monmouth Real Estate Investment Corporation and Brookfield Canada Office Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Monmouth Real Estate Investment Corporation 32.02% 7.91% 2.69%
Brookfield Canada Office Properties 7.64% 1.26% 0.65%

Earnings and Valuation

This table compares Monmouth Real Estate Investment Corporation and Brookfield Canada Office Properties’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Monmouth Real Estate Investment Corporation $108.67 million 11.15 $82.64 million $0.30 54.33
Brookfield Canada Office Properties N/A N/A N/A $1.16 21.52

Monmouth Real Estate Investment Corporation has higher revenue and earnings than Brookfield Canada Office Properties. Brookfield Canada Office Properties is trading at a lower price-to-earnings ratio than Monmouth Real Estate Investment Corporation, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings for Monmouth Real Estate Investment Corporation and Brookfield Canada Office Properties, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Monmouth Real Estate Investment Corporation 0 1 3 0 2.75
Brookfield Canada Office Properties 0 3 0 0 2.00

Monmouth Real Estate Investment Corporation presently has a consensus price target of $16.75, suggesting a potential upside of 2.76%. Brookfield Canada Office Properties has a consensus price target of $29.50, suggesting a potential upside of 18.19%. Given Brookfield Canada Office Properties’ higher probable upside, analysts plainly believe Brookfield Canada Office Properties is more favorable than Monmouth Real Estate Investment Corporation.

Dividends

Monmouth Real Estate Investment Corporation pays an annual dividend of $0.64 per share and has a dividend yield of 3.9%. Brookfield Canada Office Properties pays an annual dividend of $0.97 per share and has a dividend yield of 3.9%. Monmouth Real Estate Investment Corporation pays out 213.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brookfield Canada Office Properties pays out 83.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Monmouth Real Estate Investment Corporation has increased its dividend for 2 consecutive years. Monmouth Real Estate Investment Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

60.6% of Monmouth Real Estate Investment Corporation shares are held by institutional investors. Comparatively, 20.1% of Brookfield Canada Office Properties shares are held by institutional investors. 5.3% of Monmouth Real Estate Investment Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Monmouth Real Estate Investment Corporation beats Brookfield Canada Office Properties on 10 of the 14 factors compared between the two stocks.

About Monmouth Real Estate Investment Corporation

Monmouth Real Estate Investment Corporation is a real estate investment trust (REIT). The Company’s primary business is the ownership of real estate. Its investment focus is to own single tenant, industrial buildings and leased to investment-grade tenants or their subsidiaries on long-term net leases. In addition, the Company owns a portfolio of REIT investment securities. Its assets are situated near airports, transportation hubs and manufacturing plants. The Company’s featured properties include ULTA Cosmetics, Milwaukee Tool, Beam Suntory, FedEx Supply Chain Services, Coca-Cola, Best Buy, International Paper, Home Depot, FedEx Ground, Actavis, Anheuser-Busch, United Technologies, Kellogg’s, Siemens, National Oilwell and Cardinal Health. The Company’s property portfolio consists of approximately 105 properties located in over 30 states, containing a total of approximately 17.9 million rentable square feet.

About Brookfield Canada Office Properties

Brookfield Canada Office Properties is a Canada-based real estate investment trust (REIT). The Company invests, develops and operates commercial office properties in Toronto, Ottawa, Calgary and Vancouver. The Company’s commercial-property portfolio consists of interests in approximately 25 properties totaling approximately 21.1 million square feet, including approximately 4.0 million square feet of parking and other. The Company’s development portfolio consists of the Brookfield Place Calgary East development site totaling approximately 1.4 million square feet in Calgary. The Company also invests in ongoing maintenance and capital improvement projects. The Company focuses on the markets, which include financial, government and energy sectors, which are primarily located in the cities of Toronto and Calgary. Its properties include 2 Queen Street East, Queen’s Quay Terminal, Exchange Tower, Bankers Hall Retail, Suncor Energy Centre, Jean Edmonds Tower and Royal Centre.

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