Contrasting NorthStar Realty Europe Corp. (NRE) & Mack-Cali Realty Corporation (CLI)

NorthStar Realty Europe Corp. (NYSE: NRE) and Mack-Cali Realty Corporation (NYSE:CLI) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, risk, profitability and valuation.

Valuation and Earnings

This table compares NorthStar Realty Europe Corp. and Mack-Cali Realty Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
NorthStar Realty Europe Corp. $131.25 million 5.33 $37.01 million ($0.45) -28.11
Mack-Cali Realty Corporation $641.51 million 3.27 $321.83 million ($0.26) -89.77

Mack-Cali Realty Corporation has higher revenue and earnings than NorthStar Realty Europe Corp.. Mack-Cali Realty Corporation is trading at a lower price-to-earnings ratio than NorthStar Realty Europe Corp., indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares NorthStar Realty Europe Corp. and Mack-Cali Realty Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NorthStar Realty Europe Corp. -18.57% 7.73% 2.46%
Mack-Cali Realty Corporation -3.31% -1.21% -0.44%

Risk and Volatility

NorthStar Realty Europe Corp. has a beta of 2.5, meaning that its stock price is 150% more volatile than the S&P 500. Comparatively, Mack-Cali Realty Corporation has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500.

Dividends

NorthStar Realty Europe Corp. pays an annual dividend of $0.60 per share and has a dividend yield of 4.7%. Mack-Cali Realty Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 3.4%. NorthStar Realty Europe Corp. pays out -133.3% of its earnings in the form of a dividend. Mack-Cali Realty Corporation pays out -307.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a breakdown of current ratings and target prices for NorthStar Realty Europe Corp. and Mack-Cali Realty Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NorthStar Realty Europe Corp. 0 0 0 0 N/A
Mack-Cali Realty Corporation 1 2 3 0 2.33

Mack-Cali Realty Corporation has a consensus price target of $29.17, suggesting a potential upside of 24.96%. Given Mack-Cali Realty Corporation’s higher possible upside, analysts clearly believe Mack-Cali Realty Corporation is more favorable than NorthStar Realty Europe Corp..

Institutional & Insider Ownership

69.9% of NorthStar Realty Europe Corp. shares are owned by institutional investors. Comparatively, 99.2% of Mack-Cali Realty Corporation shares are owned by institutional investors. 2.2% of NorthStar Realty Europe Corp. shares are owned by insiders. Comparatively, 6.8% of Mack-Cali Realty Corporation shares are owned by 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

Mack-Cali Realty Corporation beats NorthStar Realty Europe Corp. on 9 of the 14 factors compared between the two stocks.

NorthStar Realty Europe Corp. Company Profile

NorthStar Realty Europe Corp. is a real estate investment trust (REIT). The Company is a European focused commercial real estate company with primary office properties in cities within Germany, the United Kingdom and France. Its objective is to provide its stockholders with stable and recurring cash flow supplemented by capital growth over time. The Company conducts its business through two segments: Real Estate and Corporate. Its European commercial real estate business is primarily focused on office properties. Its portfolio consists of approximately 48 properties and a total of approximately 495,588 square meters of rentable space, located in various European markets, including Frankfurt, Hamburg, Berlin, London, Paris, Amsterdam, Milan, Brussels and Madrid. Its overall portfolio is over 87% occupied. In addition, it owns over two hotels, which are leased to third-party operators. It is externally managed and advised by an affiliate of NorthStar Asset Management Group Inc. (NSAM).

Mack-Cali Realty Corporation Company Profile

Mack-Cali Realty Corporation is a self-administered and self-managed real estate investment trust (REIT). The Company owns and operates a real estate portfolio of Class A office and office/flex properties. It operates in three segments: commercial and other real estate, multi-family real estate and multi-family services. Its commercial and other real estate provides leasing, property management, acquisition, development, construction and tenant-related services for its commercial and other real estate, and multi-family real estate portfolio. Its multi-family services business also provides similar services for third parties. It owned or had interests in approximately 248 properties, consisting of approximately 119 office and approximately 110 flex properties, totaling approximately 26.6 million square feet, leased to approximately 1,600 commercial tenants and approximately 19 multi-family rental properties containing approximately 5,614 residential units, plus developable land.

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