Clipper Realty (NYSE:CLPR – Get Free Report) and Sunstone Hotel Investors (NYSE:SHO – Get Free Report) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.
Dividends
Clipper Realty pays an annual dividend of $0.38 per share and has a dividend yield of 13.1%. Sunstone Hotel Investors pays an annual dividend of $0.36 per share and has a dividend yield of 3.1%. Clipper Realty pays out -46.9% of its earnings in the form of a dividend. Sunstone Hotel Investors pays out 327.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sunstone Hotel Investors has increased its dividend for 2 consecutive years. Clipper Realty is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider and Institutional Ownership
37.6% of Clipper Realty shares are held by institutional investors. Comparatively, 99.4% of Sunstone Hotel Investors shares are held by institutional investors. 54.6% of Clipper Realty shares are held by insiders. Comparatively, 1.4% of Sunstone Hotel Investors shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Clipper Realty | -7.10% | N/A | -0.87% |
| Sunstone Hotel Investors | 3.84% | 2.27% | 1.25% |
Earnings & Valuation
This table compares Clipper Realty and Sunstone Hotel Investors”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Clipper Realty | $151.92 million | 0.31 | -$19.90 million | ($0.81) | -3.58 |
| Sunstone Hotel Investors | $960.13 million | 2.28 | $24.57 million | $0.11 | 106.68 |
Sunstone Hotel Investors has higher revenue and earnings than Clipper Realty. Clipper Realty is trading at a lower price-to-earnings ratio than Sunstone Hotel Investors, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Clipper Realty and Sunstone Hotel Investors, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Clipper Realty | 0 | 1 | 0 | 0 | 2.00 |
| Sunstone Hotel Investors | 0 | 5 | 2 | 1 | 2.50 |
Sunstone Hotel Investors has a consensus price target of $10.83, indicating a potential downside of 7.68%. Given Sunstone Hotel Investors’ stronger consensus rating and higher possible upside, analysts plainly believe Sunstone Hotel Investors is more favorable than Clipper Realty.
Volatility and Risk
Clipper Realty has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, Sunstone Hotel Investors has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.
Summary
Sunstone Hotel Investors beats Clipper Realty on 14 of the 18 factors compared between the two stocks.
About Clipper Realty
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.
About Sunstone Hotel Investors
Sunstone Hotel Investors, Inc. is a lodging real estate investment trust ("REIT") that as of the date of this release owns 14 hotels comprised of 6,675 rooms, the majority of which are operated under nationally recognized brands. Sunstone's strategy is to create long-term stakeholder value through the acquisition, active ownership, and disposition of well-located hotel and resort real estate.
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