Critical Comparison: Urstadt Biddle Properties (UBA) vs. Liberty Property Trust (LPT)

Urstadt Biddle Properties (NYSE: UBA) and Liberty Property Trust (NYSE:LPT) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Analyst Ratings

This is a breakdown of current recommendations for Urstadt Biddle Properties and Liberty Property Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Urstadt Biddle Properties 0 3 0 0 2.00
Liberty Property Trust 1 5 2 0 2.13

Urstadt Biddle Properties currently has a consensus target price of $21.50, indicating a potential upside of 2.33%. Liberty Property Trust has a consensus target price of $43.14, indicating a potential upside of 0.57%. Given Urstadt Biddle Properties’ higher probable upside, research analysts plainly believe Urstadt Biddle Properties is more favorable than Liberty Property Trust.

Earnings and Valuation

This table compares Urstadt Biddle Properties and Liberty Property Trust’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Urstadt Biddle Properties $123.56 million 6.70 $52.93 million $0.90 23.34
Liberty Property Trust $746.71 million 8.47 $356.81 million $2.37 18.10

Liberty Property Trust has higher revenue and earnings than Urstadt Biddle Properties. Liberty Property Trust is trading at a lower price-to-earnings ratio than Urstadt Biddle Properties, indicating that it is currently the more affordable of the two stocks.

Dividends

Urstadt Biddle Properties pays an annual dividend of $1.06 per share and has a dividend yield of 5.0%. Liberty Property Trust pays an annual dividend of $1.60 per share and has a dividend yield of 3.7%. Urstadt Biddle Properties pays out 117.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Liberty Property Trust pays out 67.5% of its earnings in the form of a dividend. Urstadt Biddle Properties has raised its dividend for 17 consecutive years and Liberty Property Trust has raised its dividend for 2 consecutive years. Urstadt Biddle Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

60.1% of Urstadt Biddle Properties shares are held by institutional investors. Comparatively, 91.3% of Liberty Property Trust shares are held by institutional investors. 20.1% of Urstadt Biddle Properties shares are held by company insiders. Comparatively, 1.5% of Liberty Property Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Urstadt Biddle Properties has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500. Comparatively, Liberty Property Trust has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.

Profitability

This table compares Urstadt Biddle Properties and Liberty Property Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Urstadt Biddle Properties 42.95% 13.14% 5.41%
Liberty Property Trust 47.78% 11.41% 5.69%

Summary

Liberty Property Trust beats Urstadt Biddle Properties on 12 of the 17 factors compared between the two stocks.

About Urstadt Biddle Properties

Urstadt Biddle Properties Inc. is a real estate investment trust, which is engaged in the acquisition, ownership and management of commercial real estate. The Company owns Ridgeway Shopping Center (Ridgeway) property, which is located in Stamford, Connecticut. Its segments include Ridgeway and All Other Operating Segments. Its primary business is the ownership of real estate investments with primary emphasis on properties in the metropolitan New York tri-state area outside of the City of New York. As of October 31, 2016, the Company’s properties consisted principally of neighborhood and community shopping centers and seven office buildings. As of March 30, 2017, the Company owned or had equity interests in 80 properties, including neighborhood and community shopping centers, office buildings, single tenant retail or restaurant properties and office/retail mixed-use properties located in four states throughout the United States.

About Liberty Property Trust

Liberty Property Trust (the Trust) is a self-administered and self-managed Maryland real estate investment trust (REIT). The Trust’s assets are owned directly or indirectly, and substantially all of the Trust’s operations are conducted directly or indirectly, by its subsidiary, Liberty Property Limited Partnership (the Operating Partnership). The Company’s segments include Carolinas/Richmond; Chicago/Milwaukee; Florida; Houston; Lehigh/Central PA; Minnesota; Philadelphia; Southeastern PA; United Kingdom, and Other, which includes Arizona; Atlanta; Cincinnati/Columbus/Indianapolis; Dallas; DC Metro; New Jersey; Southern California, and other. The Company owns and operates industrial properties nationally and owns and operates office properties in a focused group of office markets. Additionally, the Company owns certain assets in the United Kingdom. As of December 31, 2016, the Company owned and operated 450 industrial and 55 office properties totaling 86.0 million square feet.

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