Reviewing CBL & Associates Properties (NYSE:CBL) & Stag Industrial (NYSE:STAG)

CBL & Associates Properties (NYSE:CBL) and Stag Industrial (NYSE:STAG) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.

Earnings and Valuation

This table compares CBL & Associates Properties and Stag Industrial’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CBL & Associates Properties $858.56 million 0.24 -$78.57 million $1.73 0.69
Stag Industrial $350.99 million 10.85 $92.92 million $1.79 16.74

Stag Industrial has lower revenue, but higher earnings than CBL & Associates Properties. CBL & Associates Properties is trading at a lower price-to-earnings ratio than Stag Industrial, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

64.9% of CBL & Associates Properties shares are held by institutional investors. Comparatively, 89.0% of Stag Industrial shares are held by institutional investors. 12.3% of CBL & Associates Properties shares are held by company insiders. Comparatively, 1.5% of Stag Industrial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

CBL & Associates Properties pays an annual dividend of $0.35 per share and has a dividend yield of 29.2%. Stag Industrial pays an annual dividend of $1.43 per share and has a dividend yield of 4.8%. CBL & Associates Properties pays out 20.2% of its earnings in the form of a dividend. Stag Industrial pays out 79.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Stag Industrial has increased its dividend for 8 consecutive years. CBL & Associates Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for CBL & Associates Properties and Stag Industrial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CBL & Associates Properties 4 3 0 0 1.43
Stag Industrial 0 2 3 0 2.60

CBL & Associates Properties presently has a consensus target price of $1.71, indicating a potential upside of 42.08%. Stag Industrial has a consensus target price of $30.63, indicating a potential upside of 2.22%. Given CBL & Associates Properties’ higher probable upside, equities analysts plainly believe CBL & Associates Properties is more favorable than Stag Industrial.

Volatility and Risk

CBL & Associates Properties has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500. Comparatively, Stag Industrial has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500.

Profitability

This table compares CBL & Associates Properties and Stag Industrial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CBL & Associates Properties -14.76% -10.14% -1.94%
Stag Industrial 20.06% 4.57% 2.38%

Summary

Stag Industrial beats CBL & Associates Properties on 11 of the 17 factors compared between the two stocks.

About CBL & Associates Properties

Headquartered in Chattanooga, TN, CBL Properties owns and manages a national portfolio of market-dominant properties located in dynamic and growing communities. CBL's portfolio is comprised of 114 properties totaling 71.1 million square feet across 26 states, including 71 high-quality enclosed, outlet and open-air retail centers and 11 properties managed for third parties. CBL continuously strengthens its company and portfolio through active management, aggressive leasing and profitable reinvestment in its properties.

About Stag Industrial

STAG Industrial, Inc. is an industrial real estate operating company focused on the acquisition, ownership, and operation of single-tenant, industrial properties throughout the United States. The Company was formed as a Maryland corporation and has elected to be treated and intends to continue to qualify as a real estate investment trust (“REIT”) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended. The Company is structured as an umbrella partnership REIT, commonly called an UPREIT, and owns substantially all of its properties and conducts substantially all of its business through its operating partnership, STAG Industrial Operating Partnership, L.P., a Delaware limited partnership (the “Operating Partnership”).

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