Analyzing Highwoods Properties (NYSE:HIW) and Mackenzie Realty Capital (NASDAQ:MKZR)

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

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%

Volatility & 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.

Dividends

Highwoods Properties pays an annual dividend of $2.00 per share and has a dividend yield of 6.4%. Mackenzie Realty Capital pays an annual dividend of $2.00 per share and has a dividend yield of 132.5%. Highwoods Properties pays out 131.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mackenzie Realty Capital pays out -32.5% of its earnings in the form of a dividend. Mackenzie Realty Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent ratings and price targets 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 currently has a consensus target price of $31.67, indicating a potential upside of 1.63%. Given Highwoods Properties’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Highwoods Properties is more favorable than Mackenzie Realty Capital.

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	4.26	$159.61 million	$1.52	20.50
Mackenzie Realty Capital	$19.38 million	0.18	-$25.92 million	($6.15)	-0.25

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.

Institutional and Insider 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 large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Highwoods Properties beats Mackenzie Realty Capital on 13 of the 16 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.