Contrasting Mack-Cali Realty (NYSE:CLI) & American Finance Trust (NASDAQ:AFIN)

Mack-Cali Realty (NYSE:CLI) and American Finance Trust (NASDAQ:AFIN) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Institutional & Insider Ownership

86.8% of Mack-Cali Realty shares are owned by institutional investors. Comparatively, 51.8% of American Finance Trust shares are owned by institutional investors. 6.8% of Mack-Cali Realty shares are owned by company insiders. Comparatively, 0.5% of American Finance Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Mack-Cali Realty has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, American Finance Trust has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500.

Earnings and Valuation

This table compares Mack-Cali Realty and American Finance Trust’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mack-Cali Realty $313.56 million 5.18 -$51.39 million $1.07 16.72
American Finance Trust $305.22 million 3.26 -$31.86 million $0.90 10.16

American Finance Trust has lower revenue, but higher earnings than Mack-Cali Realty. American Finance Trust is trading at a lower price-to-earnings ratio than Mack-Cali Realty, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Mack-Cali Realty and American Finance Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mack-Cali Realty 0 1 0 0 2.00
American Finance Trust 0 1 1 0 2.50

Mack-Cali Realty currently has a consensus target price of $13.00, indicating a potential downside of 27.33%. American Finance Trust has a consensus target price of $12.00, indicating a potential upside of 31.29%. Given American Finance Trust’s stronger consensus rating and higher probable upside, analysts clearly believe American Finance Trust is more favorable than Mack-Cali Realty.

Profitability

This table compares Mack-Cali Realty and American Finance Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mack-Cali Realty -1.27% -8.16% -2.46%
American Finance Trust -9.71% -1.81% -0.84%

Summary

American Finance Trust beats Mack-Cali Realty on 8 of the 14 factors compared between the two stocks.

About Mack-Cali Realty

One of the country's leading real estate investment trusts (REITs), Mack-Cali Realty Corporation is an owner, manager and developer of premier office and multifamily properties in select waterfront and transit-oriented markets throughout New Jersey. Mack-Cali is headquartered in Jersey City, New Jersey, and is the visionary behind the city's flourishing waterfront, where the company is leading development, improvement and place-making initiatives for Harborside, a master-planned destination comprised of class A office, luxury apartments, diverse retail and restaurants, and public spaces. A fully integrated and self-managed company, Mack-Cali has provided world-class management, leasing, and development services throughout New Jersey and the surrounding region for over two decades. By regularly investing in its properties and innovative lifestyle amenity packages, Mack-Cali creates environments that empower tenants and residents to reimagine the way they work and live.

About American Finance Trust

American Finance Trust, Inc. (Nasdaq: AFIN) is a publicly traded real estate investment trust listed on the Nasdaq focused on acquiring and managing a diversified portfolio of primarily service-oriented and traditional retail and distribution related commercial real estate properties in the U.S.

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