Analyzing Seritage Growth Properties (NYSE:SRG) and Douglas Emmett (NYSE:DEI)

Douglas Emmett (NYSE:DEI) and Seritage Growth Properties (NYSE:SRG) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.

Volatility and Risk

Douglas Emmett has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, Seritage Growth Properties has a beta of 2.43, suggesting that its stock price is 143% more volatile than the S&P 500.

Earnings & Valuation

This table compares Douglas Emmett and Seritage Growth Properties”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Douglas Emmett	$1.00 billion	1.56	$16.27 million	$0.09	103.83
Seritage Growth Properties	$17.62 million	8.84	-$153.54 million	($1.42)	-1.95

Douglas Emmett has higher revenue and earnings than Seritage Growth Properties. Seritage Growth Properties is trading at a lower price-to-earnings ratio than Douglas Emmett, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Douglas Emmett and Seritage Growth Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Douglas Emmett	1	8	1	0	2.00
Seritage Growth Properties	1	0	0	0	1.00

Douglas Emmett currently has a consensus target price of $12.94, indicating a potential upside of 38.44%. Given Douglas Emmett’s stronger consensus rating and higher probable upside, research analysts clearly believe Douglas Emmett is more favorable than Seritage Growth Properties.

Profitability

This table compares Douglas Emmett and Seritage Growth Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Douglas Emmett	1.62%	0.46%	0.17%
Seritage Growth Properties	-404.37%	-20.13%	-12.10%

Institutional & Insider Ownership

97.4% of Douglas Emmett shares are held by institutional investors. Comparatively, 78.9% of Seritage Growth Properties shares are held by institutional investors. 15.1% of Douglas Emmett shares are held by insiders. Comparatively, 0.6% of Seritage Growth Properties shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Douglas Emmett beats Seritage Growth Properties on 12 of the 14 factors compared between the two stocks.

About Douglas Emmett

Douglas Emmett, Inc. (DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities.

About Seritage Growth Properties

Seritage Growth Properties operates as a real estate investment trust. The firm engages in the acquisition, ownership, development, redevelopment, management, and leasing of retail properties throughout the United States. Its property portfolio includes mall, shopping centers and freestanding locations. The company was founded on June 3, 2015 and is headquartered in New York, NY.