Head-To-Head Review: Armada Hoffler Properties (NYSE:AHRT) & Seritage Growth Properties (NYSE:SRG)

Seritage Growth Properties (NYSE:SRG) and Armada Hoffler Properties (NYSE:AHRT) are both small-cap real estate companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.

Institutional and Insider Ownership

78.9% of Seritage Growth Properties shares are owned by institutional investors. Comparatively, 66.3% of Armada Hoffler Properties shares are owned by institutional investors. 0.2% of Seritage Growth Properties shares are owned by company insiders. Comparatively, 9.3% of Armada Hoffler Properties shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Seritage Growth Properties and Armada Hoffler Properties”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seritage Growth Properties	$18.20 million	4.96	-$68.21 million	($1.04)	-1.54
Armada Hoffler Properties	$285.20 million	1.67	$5.60 million	($0.66)	-9.65

Armada Hoffler Properties has higher revenue and earnings than Seritage Growth Properties. Armada Hoffler Properties is trading at a lower price-to-earnings ratio than Seritage Growth Properties, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Seritage Growth Properties has a beta of 2.27, meaning that its stock price is 127% more volatile than the S&P 500. Comparatively, Armada Hoffler Properties has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.

Profitability

This table compares Seritage Growth Properties and Armada Hoffler Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Seritage Growth Properties	-419.02%	-17.06%	-12.94%
Armada Hoffler Properties	-22.97%	-1.36%	-0.35%

Analyst Ratings

This is a summary of current ratings for Seritage Growth Properties and Armada Hoffler Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seritage Growth Properties	1	0	0	0	1.00
Armada Hoffler Properties	1	2	1	1	2.40

Armada Hoffler Properties has a consensus target price of $7.50, suggesting a potential upside of 17.70%. Given Armada Hoffler Properties’ stronger consensus rating and higher possible upside, analysts plainly believe Armada Hoffler Properties is more favorable than Seritage Growth Properties.

Summary

Armada Hoffler Properties beats Seritage Growth Properties on 11 of the 15 factors compared between the two stocks.

About Seritage Growth Properties

Seritage Growth Properties is a real estate investment trust that owns, leases and redevelops retail and mixed-use properties in the United States. Its portfolio has included shopping centers, standalone retail locations and other commercial real estate assets, with a focus on properties that can be repositioned for uses such as retail, office, residential, hospitality and entertainment. The company was formed in 2015 after acquiring a substantial portfolio of properties from Sears Holdings. Seritage’s strategy has centered on transforming select former Sears locations and other underutilized real estate into diversified, higher-quality developments through leasing, redevelopment and, where appropriate, asset sales.

About Armada Hoffler Properties

Armada Hoffler Properties, Inc. is a real estate investment trust that develops, builds, owns and manages commercial and residential properties. Its portfolio includes office buildings, retail centers and multifamily communities, with an emphasis on mixed-use projects that combine different property types. The company is based in Virginia Beach, Virginia, and focuses primarily on markets in the Mid-Atlantic and southeastern United States. In addition to managing its properties, Armada Hoffler provides development and construction services through its integrated real estate and construction operations.