Critical Contrast: Mackenzie Realty Capital (NASDAQ:MKZR) versus Highwoods Properties (NYSE:HIW)

Highwoods Properties (NYSE:HIW) and Mackenzie Realty Capital (NASDAQ:MKZR) are both real estate companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Volatility and Risk

Highwoods Properties has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Mackenzie Realty Capital has a beta of -0.76, indicating that its stock price is 176% less volatile than the S&P 500.

Valuation and Earnings

This table compares Highwoods Properties and Mackenzie Realty Capital”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Highwoods Properties	$806.11 million	4.30	$159.61 million	$1.52	20.66
Mackenzie Realty Capital	$22.06 million	0.15	-$25.92 million	($6.15)	-0.24

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

Insider & Institutional Ownership

96.3% of Highwoods Properties shares are owned by institutional investors. 1.3% of Highwoods Properties shares are owned by insiders. Comparatively, 6.3% of Mackenzie Realty Capital shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Highwoods Properties and Mackenzie Realty Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Highwoods Properties	0	7	1	0	2.12
Mackenzie Realty Capital	1	0	0	0	1.00

Highwoods Properties presently has a consensus price target of $31.67, suggesting a potential upside of 0.82%. Given Highwoods Properties’ stronger consensus rating and higher possible upside, analysts clearly believe Highwoods Properties is more favorable than Mackenzie Realty Capital.

Profitability

This table compares Highwoods Properties and Mackenzie Realty Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Highwoods Properties	20.74%	7.06%	2.72%
Mackenzie Realty Capital	-90.30%	-18.99%	-7.07%

Summary

Highwoods Properties beats Mackenzie Realty Capital on 13 of the 14 factors compared between the two stocks.

About Highwoods Properties

Highwoods Properties, Inc., headquartered in Raleigh, is a publicly-traded (NYSE:HIW), fully-integrated office real estate investment trust (REIT) that owns, develops, acquires, leases and manages properties primarily in the best business districts (BBDs) of Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond and Tampa. Highwoods is in the work-placemaking business. We believe that by creating environments and experiences where the best and brightest can achieve together what they cannot apart, we can deliver greater value to our customers, their teammates and, in turn, our stakeholders.

About Mackenzie Realty Capital

MacKenzie Realty Capital Inc. is a REIT which focused on investing in multifamily housing and office real estate properties located principally in the United States. MacKenzie Realty Capital Inc. is based in ORINDA, Calif.