Head-To-Head Analysis: DDR (DDR) versus Cedar Realty Trust (NYSE:CDR)

DDR (NYSE: DDR) and Cedar Realty Trust (NYSE:CDR) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Profitability

This table compares DDR and Cedar Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DDR -27.22% -5.38% -1.83%
Cedar Realty Trust 13.11% 4.71% 1.53%

Risk and Volatility

DDR has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, Cedar Realty Trust has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.

Institutional & Insider Ownership

79.2% of DDR shares are owned by institutional investors. Comparatively, 94.0% of Cedar Realty Trust shares are owned by institutional investors. 16.1% of DDR shares are owned by insiders. Comparatively, 4.5% of Cedar Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares DDR and Cedar Realty Trust’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DDR $887.95 million 3.15 -$241.68 million ($0.73) -10.40
Cedar Realty Trust $146.01 million 2.56 $19.14 million ($0.03) -135.33

Cedar Realty Trust has lower revenue, but higher earnings than DDR. Cedar Realty Trust is trading at a lower price-to-earnings ratio than DDR, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for DDR and Cedar Realty Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DDR 1 9 6 0 2.31
Cedar Realty Trust 1 2 3 0 2.33

DDR currently has a consensus price target of $10.63, suggesting a potential upside of 39.99%. Cedar Realty Trust has a consensus price target of $5.69, suggesting a potential upside of 40.09%. Given Cedar Realty Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Cedar Realty Trust is more favorable than DDR.

Dividends

DDR pays an annual dividend of $0.76 per share and has a dividend yield of 10.0%. Cedar Realty Trust pays an annual dividend of $0.20 per share and has a dividend yield of 4.9%. DDR pays out -104.1% of its earnings in the form of a dividend. Cedar Realty Trust pays out -666.7% 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. Cedar Realty Trust has raised its dividend for 7 consecutive years.

Summary

Cedar Realty Trust beats DDR on 12 of the 17 factors compared between the two stocks.

DDR Company Profile

DDR Corp. is a self-administered and self-managed real estate investment trust. It operates through two segments: shopping centers and loan investments. It is in the business of acquiring, owning, developing, redeveloping, expanding, leasing and managing shopping centers. As of December 31, 2016, it owned and managed approximately 106 million total square feet of gross leasable area (GLA). As of December 31, 2016, the portfolio properties included 319 shopping centers (including 152 centers owned through joint ventures). As of December 31, 2016, the portfolio properties also included over 650 acres of undeveloped land, including parcels located adjacent to certain of the shopping centers. As of December 31, 2016, the portfolio properties aggregated to 75.8 million square feet of Company-owned GLA located in 35 states, plus Puerto Rico. These centers are in the Southeast and Midwest, with significant concentrations in Florida, Georgia, Ohio and North Carolina, as well as Puerto Rico.

Cedar Realty Trust Company Profile

Cedar Realty Trust, Inc. is a real estate investment trust (REIT). The Company focuses on ownership and operation of grocery-anchored shopping centers straddling the Washington District of Columbia (DC) to Boston corridor. As of December 31, 2016, the Company owned and managed a portfolio of 61 operating properties (excluding properties held for sale) totaling approximately 9.1 million square feet of gross leasable area (GLA). The Company focuses its investment activities on grocery-anchored shopping centers. The Company’s properties portfolio comprises 26 properties in Pennsylvania, eight properties in Massachusetts, seven properties in Connecticut, seven properties in Maryland / Washington, D.C, eight properties in Virginia, four properties in New Jersey and one property in New York. The Company’s 106 are going to expire in the year 2017. The Company conducts all of its businesses through the Cedar Realty Trust Partnership L.P. (the Operating Partnership).

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