Analyzing Clipper Realty (NYSE:CLPR) and Paramount Group (NYSE:PGRE)

Paramount Group (NYSE:PGREGet Rating) and Clipper Realty (NYSE:CLPRGet Rating) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.

Valuation & Earnings

This table compares Paramount Group and Clipper Realty’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Paramount Group $726.79 million 2.22 -$20.35 million ($0.05) -146.97
Clipper Realty $122.73 million 0.99 -$7.59 million ($0.43) -17.53

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

Volatility & Risk

Paramount Group has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Clipper Realty has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Profitability

This table compares Paramount Group and Clipper Realty’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Paramount Group -1.84% -0.30% -0.16%
Clipper Realty -5.00% -8.46% -0.51%

Dividends

Paramount Group pays an annual dividend of $0.31 per share and has a dividend yield of 4.2%. Clipper Realty pays an annual dividend of $0.38 per share and has a dividend yield of 5.0%. Paramount Group pays out -619.9% of its earnings in the form of a dividend. Clipper Realty pays out -88.4% 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. Paramount Group has raised its dividend for 1 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Paramount Group and Clipper Realty, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Paramount Group 1 1 2 0 2.25
Clipper Realty 0 1 1 0 2.50

Paramount Group presently has a consensus price target of $11.38, indicating a potential upside of 54.76%. Clipper Realty has a consensus price target of $13.00, indicating a potential upside of 72.41%. Given Clipper Realty’s stronger consensus rating and higher possible upside, analysts plainly believe Clipper Realty is more favorable than Paramount Group.

Insider and Institutional Ownership

64.3% of Paramount Group shares are held by institutional investors. Comparatively, 39.6% of Clipper Realty shares are held by institutional investors. 10.4% of Paramount Group shares are held by company insiders. Comparatively, 40.0% of Clipper Realty shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Paramount Group beats Clipper Realty on 11 of the 17 factors compared between the two stocks.

Paramount Group Company Profile (Get Rating)

Headquartered in New York City, Paramount Group, Inc. is a fully-integrated real estate investment trust that owns, operates, manages, acquires and redevelops high-quality, Class A office properties located in select central business district submarkets of New York City and San Francisco. Paramount is focused on maximizing the value of its portfolio by leveraging the sought-after locations of its assets and its proven property management capabilities to attract and retain high-quality tenants.

Clipper Realty Company Profile (Get Rating)

Clipper Realty Inc. (NYSE: CLPR) is a self-administered and self-managed real estate company that acquires, owns, manages, operates and repositions multifamily residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn.

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