Reviewing Douglas Emmett (DEI) and CBL & Associates Properties (CBL)

Douglas Emmett (NYSE: DEI) and CBL & Associates Properties (NYSE:CBL) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Douglas Emmett and CBL & Associates Properties, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Douglas Emmett 2 6 1 0 1.89
CBL & Associates Properties 1 5 2 0 2.13

Douglas Emmett presently has a consensus price target of $39.71, indicating a potential upside of 3.05%. CBL & Associates Properties has a consensus price target of $10.46, indicating a potential upside of 26.16%. Given CBL & Associates Properties’ stronger consensus rating and higher possible upside, analysts plainly believe CBL & Associates Properties is more favorable than Douglas Emmett.

Profitability

This table compares Douglas Emmett and CBL & Associates Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Douglas Emmett 12.00% 2.95% 1.18%
CBL & Associates Properties 14.88% 9.43% 2.05%

Risk & Volatility

Douglas Emmett has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, CBL & Associates Properties has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Institutional & Insider Ownership

96.2% of Douglas Emmett shares are held by institutional investors. Comparatively, 89.5% of CBL & Associates Properties shares are held by institutional investors. 17.8% of Douglas Emmett shares are held by company insiders. Comparatively, 11.7% of CBL & Associates Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Douglas Emmett and CBL & Associates Properties’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Douglas Emmett $788.75 million 7.96 $481.47 million $0.59 65.32
CBL & Associates Properties $977.46 million 1.45 $637.66 million $0.59 14.05

CBL & Associates Properties has higher revenue and earnings than Douglas Emmett. CBL & Associates Properties is trading at a lower price-to-earnings ratio than Douglas Emmett, indicating that it is currently the more affordable of the two stocks.

Dividends

Douglas Emmett pays an annual dividend of $0.92 per share and has a dividend yield of 2.4%. CBL & Associates Properties pays an annual dividend of $1.06 per share and has a dividend yield of 12.8%. Douglas Emmett pays out 155.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CBL & Associates Properties pays out 179.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CBL & Associates Properties has increased its dividend for 6 consecutive years. CBL & Associates Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

CBL & Associates Properties beats Douglas Emmett on 11 of the 16 factors compared between the two stocks.

About Douglas Emmett

Douglas Emmett, Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company is owner and operator of office and multifamily properties located in submarkets in Los Angeles and Honolulu. The Company operates through two segments: the acquisition, development, ownership and management of office real estate (Office Segment), and the acquisition, development, ownership and management of multifamily real estate (Multifamily Segment). The services for its Office segment include primarily rental of office space and other tenant services, including parking and storage space rental. The services for its Multifamily segment include primarily rental of apartments and other tenant services, including parking and storage space rental. It focuses on owning, acquiring developing and managing a substantial share of office properties and multifamily communities in neighborhoods.

About CBL & Associates Properties

CBL & Associates Properties, Inc. is a self-managed, self-administered, integrated real estate investment trust. The Company owns, develops, acquires, leases, manages and operates regional shopping malls, open-air and mixed-use centers, outlet centers, associated centers, community centers and office properties. Its segments are Malls, Associated Centers, Community Centers and All Other. As of December 31, 2016, the Company owned a controlling interest in 65 Malls and non-controlling interests in nine Malls. As of December 31, 2016, the Company owned a controlling interest in 20 Associated Centers and a non-controlling interest in three Associated Centers. As of December 31, 2016, the Company owned a controlling interest in four Community Centers and a non-controlling interest in five Community Centers. As of December 31, 2016, the Company’s properties were located in 27 states, primarily in the southeastern and mid-western United States.

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