Armada Hoffler Properties (NYSE:AHRT – Get Free Report) and Seritage Growth Properties (NYSE:SRG – Get Free Report) are both small-cap real estate companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, dividends, earnings, profitability and institutional ownership.
Risk and Volatility
Armada Hoffler Properties has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, Seritage Growth Properties has a beta of 2.27, meaning that its share price is 127% more volatile than the S&P 500.
Insider & Institutional Ownership
66.3% of Armada Hoffler Properties shares are held by institutional investors. Comparatively, 78.9% of Seritage Growth Properties shares are held by institutional investors. 9.3% of Armada Hoffler Properties shares are held by insiders. Comparatively, 0.2% of Seritage Growth Properties shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Armada Hoffler Properties and Seritage Growth Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Armada Hoffler Properties | -22.97% | -1.36% | -0.35% |
| Seritage Growth Properties | -419.02% | -17.06% | -12.94% |
Valuation and Earnings
This table compares Armada Hoffler Properties and Seritage Growth Properties”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Armada Hoffler Properties | $285.20 million | 1.67 | $5.60 million | ($0.66) | -9.69 |
| Seritage Growth Properties | $18.20 million | 5.30 | -$68.21 million | ($1.04) | -1.65 |
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.
Analyst Ratings
This is a summary of current ratings and target prices for Armada Hoffler Properties and Seritage Growth Properties, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Armada Hoffler Properties | 1 | 2 | 1 | 1 | 2.40 |
| Seritage Growth Properties | 1 | 0 | 0 | 0 | 1.00 |
Armada Hoffler Properties currently has a consensus price target of $7.50, indicating a potential upside of 17.28%. Given Armada Hoffler Properties’ stronger consensus rating and higher probable 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 Armada Hoffler Properties
Armada Hoffler Properties, Inc. (the “Company”) is a vertically integrated, self-managed real estate investment trust (“REIT”) with over four decades of experience developing, building, acquiring, and managing high-quality retail, office, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. In addition to the ownership of the Company’s operating property portfolio, the Company develops and builds properties for its own account and through joint ventures between the Company and unaffiliated partners and also invests in development projects through real estate financing arrangements. The Company also provides general construction and development services to third-party clients. The Company’s construction and development experience includes mid- and high-rise office buildings, retail strip malls, retail power centers, multifamily apartment communities, hotels and conference centers, single- and multi-tenant industrial, distribution, and manufacturing facilities, educational, medical, and special purpose facilities, government projects, parking garages, and mixed-use town centers. The Company is the sole general partner of Armada Hoffler, L.P. (the “Operating Partnership”) and, as of March 31, 2024, owned 75.5% of the economic interest in the Operating Partnership, of which 0.1% is held as general partnership units. The operations of the Company are conducted primarily through the Operating Partnership and the wholly owned subsidiaries thereof.
About Seritage Growth Properties
Seritage Growth Properties operates as a real estate investment trust. The firm engages in the acquisition, ownership, development, redevelopment, management, and leasing of retail properties throughout the United States. Its property portfolio includes mall, shopping centers and freestanding locations. The company was founded on June 3, 2015 and is headquartered in New York, NY.
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