Empire State Realty Trust (NYSE:ESRT – Get Free Report) and Creative Media & Community Trust Corporation (NASDAQ:CMCT – Get Free Report) are both small-cap real estate companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitability and risk.
Analyst Recommendations
This is a summary of current ratings and target prices for Empire State Realty Trust and Creative Media & Community Trust Corporation, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Empire State Realty Trust | 2 | 1 | 0 | 0 | 1.33 |
| Creative Media & Community Trust Corporation | 1 | 1 | 0 | 0 | 1.50 |
Empire State Realty Trust currently has a consensus price target of $5.00, indicating a potential downside of 0.70%. Given Empire State Realty Trust’s higher probable upside, analysts clearly believe Empire State Realty Trust is more favorable than Creative Media & Community Trust Corporation.
Volatility and Risk
Empire State Realty Trust has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, Creative Media & Community Trust Corporation has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.
Dividends
Empire State Realty Trust pays an annual dividend of $0.14 per share and has a dividend yield of 2.8%. Creative Media & Community Trust Corporation pays an annual dividend of $1.60 per share and has a dividend yield of 49.7%. Empire State Realty Trust pays out 200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Creative Media & Community Trust Corporation pays out -0.0% of its earnings in the form of a dividend. Creative Media & Community Trust Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Empire State Realty Trust and Creative Media & Community Trust Corporation’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Empire State Realty Trust | 0.93% | 0.40% | 0.17% |
| Creative Media & Community Trust Corporation | -36.99% | -60.85% | -5.09% |
Insider & Institutional Ownership
67.1% of Empire State Realty Trust shares are held by institutional investors. Comparatively, 28.3% of Creative Media & Community Trust Corporation shares are held by institutional investors. 15.2% of Empire State Realty Trust shares are held by company insiders. Comparatively, 10.9% of Creative Media & Community Trust Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Empire State Realty Trust and Creative Media & Community Trust Corporation”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Empire State Realty Trust | $768.27 million | 1.13 | $47.60 million | $0.07 | 71.93 |
| Creative Media & Community Trust Corporation | $113.78 million | 0.08 | -$39.00 million | ($3,546.55) | -0.00 |
Empire State Realty Trust has higher revenue and earnings than Creative Media & Community Trust Corporation. Creative Media & Community Trust Corporation is trading at a lower price-to-earnings ratio than Empire State Realty Trust, indicating that it is currently the more affordable of the two stocks.
Summary
Empire State Realty Trust beats Creative Media & Community Trust Corporation on 12 of the 15 factors compared between the two stocks.
About Empire State Realty Trust
Empire State Realty Trust, Inc. (NYSE: ESRT) is a NYC-focused REIT that owns and operates a portfolio of modernized, amenitized, and well-located office, retail, and multifamily assets. The company is the recognized leader in energy efficiency and indoor environmental quality. ESRT’s flagship Empire State Building – the “World’s Most Famous Building” – includes its Observatory, Tripadvisor’s 2023 Travelers’ Choice Awards: Best of the Best the #1 attraction in the US for two consecutive years. As of September 30, 2023, ESRT’s portfolio is comprised of approximately 8.6 million rentable square feet of office space, 0.7 million rentable square feet of retail space and 727 residential units across three multifamily properties.
About Creative Media & Community Trust Corporation
Creative Media & Community Trust Corp. is a real estate investment trust that seeks to own, operate, and develop premier multifamily and creative office assets in vibrant and emerging communities throughout the United States. It operates through the following segments: Office, Hotel, and Lending. The Office segment consists of the rental of office space and other tenant services, including tenant reimbursements, parking, and storage space rental. The Hotel segment involves the operation of hotel properties. The Lending segment focuses on loans to small businesses. The company was founded in 1993 and is headquartered in Dallas, TX.
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