One Liberty Properties (NYSE: OLP) and American Assets Trust (NYSE:AAT) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, valuation, risk, institutional ownership and earnings.

Dividends

One Liberty Properties pays an annual dividend of $1.80 per share and has a dividend yield of 6.9%. American Assets Trust pays an annual dividend of $1.08 per share and has a dividend yield of 2.9%. One Liberty Properties pays out 137.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Assets Trust pays out 163.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. One Liberty Properties has raised its dividend for 4 consecutive years. One Liberty Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

One Liberty Properties has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, American Assets Trust has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for One Liberty Properties and American Assets Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
One Liberty Properties 0 3 0 0 2.00
American Assets Trust 0 2 1 0 2.33

One Liberty Properties currently has a consensus price target of $25.25, indicating a potential downside of 2.73%. American Assets Trust has a consensus price target of $43.67, indicating a potential upside of 15.46%. Given American Assets Trust’s stronger consensus rating and higher probable upside, analysts plainly believe American Assets Trust is more favorable than One Liberty Properties.

Institutional & Insider Ownership

41.2% of One Liberty Properties shares are held by institutional investors. Comparatively, 98.2% of American Assets Trust shares are held by institutional investors. 8.6% of One Liberty Properties shares are held by insiders. Comparatively, 34.2% of American Assets Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares One Liberty Properties and American Assets Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
One Liberty Properties 32.44% 8.31% 3.30%
American Assets Trust 10.90% 3.97% 1.58%

Valuation and Earnings

This table compares One Liberty Properties and American Assets Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
One Liberty Properties $70.59 million 6.91 $24.42 million $1.31 19.82
American Assets Trust $295.09 million 6.04 $45.63 million $0.66 57.30

American Assets Trust has higher revenue and earnings than One Liberty Properties. One Liberty Properties is trading at a lower price-to-earnings ratio than American Assets Trust, indicating that it is currently the more affordable of the two stocks.

Summary

One Liberty Properties beats American Assets Trust on 9 of the 17 factors compared between the two stocks.

One Liberty Properties Company Profile

One Liberty Properties, Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company acquires, owns and manages a geographically diversified portfolio consisting of retail, industrial, flex, and health and fitness properties. As of December 31, 2016, the Company owned 114 properties and participated in joint ventures that own five properties. These 119 properties are located in 30 states and have an aggregate of approximately 10.1 million square feet (including an aggregate of approximately 1.2 million square feet at properties owned by its joint ventures). As of December 31, 2016, the Company’s property locations included Fort Mill, South Carolina; Royersford, Pennsylvania; Round Rock, Texas; W.Hartford, Connecticut; Delport, Missouri; Brooklyn, New York City; Lakemoor, Illinois; Tucker, Georgia; Cedar Park, Texas; Lake Charles, Louisiana; Sandy Springs, Georgia; Wichita, Kansas; Melville, New York; Ronkonkoma, New York, and Niles, Illinois.

American Assets Trust Company Profile

American Assets Trust, Inc. is a full service, vertically integrated and self-administered real estate investment trust (REIT). The Company owns, operates, acquires and develops retail, office, multifamily and mixed-use properties in Southern California, Northern California, Oregon, Washington, Texas and Hawaii markets. The Company operates in four business segments: retail, office, multifamily and mixed-use. As of December 31, 2016, the Company’s portfolio consisted of 11 retail shopping centers; seven office properties; a mixed-use property consisting of a 369-room all-suite hotel and a retail shopping center, and five multifamily properties. Additionally, as of December 31, 2016, the Company owned land at four of its properties that it classified as held for development and construction in progress. The Company’s markets include San Diego, the San Francisco Bay Area, Portland, Oregon, Bellevue, Washington and Oahu, Hawaii.

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