Contrasting UMH Properties (NYSE:UMH) and Clipper Realty (NYSE:CLPR)

Clipper Realty (NYSE:CLPR) and UMH Properties (NYSE:UMH) are both small-cap real estate companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Profitability

This table compares Clipper Realty and UMH Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clipper Realty	-8.36%	N/A	-1.03%
UMH Properties	11.55%	5.40%	1.86%

Dividends

Clipper Realty pays an annual dividend of $0.38 per share and has a dividend yield of 11.8%. UMH Properties pays an annual dividend of $0.90 per share and has a dividend yield of 5.4%. Clipper Realty pays out -40.9% of its earnings in the form of a dividend. UMH Properties pays out 750.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UMH Properties has increased its dividend for 4 consecutive years. Clipper Realty is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

Clipper Realty has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, UMH Properties has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Clipper Realty and UMH Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clipper Realty	0	1	0	0	2.00
UMH Properties	0	2	2	1	2.80

UMH Properties has a consensus price target of $17.25, suggesting a potential upside of 3.67%. Given UMH Properties’ stronger consensus rating and higher probable upside, analysts clearly believe UMH Properties is more favorable than Clipper Realty.

Earnings and Valuation

This table compares Clipper Realty and UMH Properties”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clipper Realty	$151.46 million	0.34	-$19.90 million	($0.93)	-3.47
UMH Properties	$261.75 million	5.43	$26.50 million	$0.12	138.67

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

Insider and Institutional Ownership

37.6% of Clipper Realty shares are owned by institutional investors. Comparatively, 75.4% of UMH Properties shares are owned by institutional investors. 54.6% of Clipper Realty shares are owned by company insiders. Comparatively, 8.3% of UMH Properties shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

UMH Properties beats Clipper Realty on 14 of the 18 factors compared between the two stocks.

About Clipper Realty

Clipper Realty Inc. (NYSE: CLPR) is a self-administered and self-managed real estate company that acquires, owns, manages, operates, and repositions multifamily residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn.

About UMH Properties

UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 135 manufactured home communities containing approximately 25,800 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan, Maryland, Alabama, South Carolina and Georgia. UMH also has an ownership interest in and operates two communities in Florida, containing 363 sites, through its joint venture with Nuveen Real Estate