Head to Head Analysis: Colony Capital (CLNY) & UMH Properties (UMH)
Colony Capital (NYSE: CLNY) and UMH Properties (NYSE:UMH) are both financials companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.
This is a summary of current ratings and target prices for Colony Capital and UMH Properties, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Colony Capital currently has a consensus target price of $27.50, indicating a potential upside of Infinity. UMH Properties has a consensus target price of $18.60, indicating a potential upside of 21.17%. Given Colony Capital’s higher probable upside, equities research analysts clearly believe Colony Capital is more favorable than UMH Properties.
This table compares Colony Capital and UMH Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Colony Capital pays an annual dividend of $1.60 per share. UMH Properties pays an annual dividend of $0.72 per share and has a dividend yield of 4.7%. Colony Capital pays out 192.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UMH Properties pays out -327.3% of its earnings in the form of a dividend. Colony Capital has raised its dividend for 7 consecutive years. UMH Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional and Insider Ownership
94.1% of Colony Capital shares are held by institutional investors. Comparatively, 55.4% of UMH Properties shares are held by institutional investors. 17.7% of Colony Capital shares are held by company insiders. Comparatively, 11.6% of UMH Properties shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Colony Capital and UMH Properties’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|UMH Properties||$99.21 million||5.40||$11.53 million||($0.22)||-69.77|
UMH Properties has higher revenue and earnings than Colony Capital. UMH Properties is trading at a lower price-to-earnings ratio than Colony Capital, indicating that it is currently the more affordable of the two stocks.
Colony Capital beats UMH Properties on 8 of the 13 factors compared between the two stocks.
Colony Capital Company Profile
Colony Capital, Inc., formerly Colony Financial, Inc., is a global real estate and investment management company. The Company operates through five segments: Real Estate Equity, including Light industrial real estate assets and operating platform; Single-family residential rentals through an investment in Colony Starwood Homes and Other real estate equity investments; Real Estate Debt, which includes loan originations and acquisitions, and Investment Management, which includes investment management of the Company-sponsored funds and other investment vehicles. Through its global investment management business, it has over $18.8 billion of assets under management. Its business objective is to provide risk-adjusted returns to its investors through a diversified portfolio of direct and indirect real estate-related equity and real estate debt investments, and fee bearing management contracts on investment funds that it manages.
UMH Properties Company Profile
UMH Properties, Inc. (UMH) is a real estate investment trust (REIT). The Company’s primary business is the ownership and operation of manufactured home communities, including leasing manufactured home sites to private manufactured home owners. The Company also leases homes to residents, and through its taxable REIT subsidiary, UMH Sales and Finance, Inc. (S&F), conducts manufactured home sales in its communities. As of May 31, 2017, the Company owned 107 manufactured home communities consisting of approximately 19,400 developed sites. The communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana and Michigan. In connection with the operation of its communities, UMH also leases homes to prospective tenants. As of December 31, 2016, UMH owned a total of 4,700 rental homes, representing approximately 26% of its developed sites. These rental homes are owned by the Company and rented to residents.
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