Head to Head Contrast: Cole Real Estate Investments (COLE) vs. Seritage Growth Properties (SRG)

Cole Real Estate Investments (NYSE: COLE) and Seritage Growth Properties (NYSE:SRG) are both financials companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Cole Real Estate Investments and Seritage Growth Properties, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cole Real Estate Investments 0 0 0 0 N/A
Seritage Growth Properties 1 1 0 0 1.50

Seritage Growth Properties has a consensus price target of $43.00, indicating a potential upside of 6.30%.

Profitability

This table compares Cole Real Estate Investments and Seritage Growth Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cole Real Estate Investments N/A N/A N/A
Seritage Growth Properties -17.97% -3.33% -1.67%

Institutional and Insider Ownership

78.0% of Seritage Growth Properties shares are owned by institutional investors. 9.8% of Seritage Growth Properties shares are owned 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.

Earnings & Valuation

This table compares Cole Real Estate Investments and Seritage Growth Properties’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cole Real Estate Investments N/A N/A N/A $0.20 N/A
Seritage Growth Properties $248.67 million 5.76 -$51.55 million ($1.39) -29.10

Cole Real Estate Investments has higher earnings, but lower revenue than Seritage Growth Properties. Seritage Growth Properties is trading at a lower price-to-earnings ratio than Cole Real Estate Investments, indicating that it is currently the more affordable of the two stocks.

Dividends

Seritage Growth Properties pays an annual dividend of $1.00 per share and has a dividend yield of 2.5%. Cole Real Estate Investments does not pay a dividend. Seritage Growth Properties pays out -71.9% of its earnings in the form of a dividend.

Summary

Seritage Growth Properties beats Cole Real Estate Investments on 5 of the 9 factors compared between the two stocks.

About Cole Real Estate Investments

Cole Real Estate Investments, Inc. is a real estate investment trust (REIT). The Company operates in two segments: Real Estate Investment (REI) and Private Capital Management (PCM). The Company’s REI segment is conducted through Cole REIT III Operating Partnership, LP (CCPT III OP). The Company’s PCM segment is conducted through Cole Capital Advisors, Inc. (CCA). Through its REI segment, the Company acquires and operates a diverse portfolio of core commercial real estate investments primarily consisting of necessity retail properties located throughout the United States, including United States protectorates. The Company’s PCM segment is responsible for managing the Managed REITs’ affairs on a day-to-day basis, identifying and making acquisitions and investments on the Managed REITs’ behalf. In February 2014, American Realty Capital Properties Inc purchased Cole Real Estate Investments, Inc.

About Seritage Growth Properties

Seritage Growth Properties (Seritage) is a self-administered and self-managed real estate investment trust. The Company is engaged in the acquisition, ownership, development, redevelopment, management and leasing of diversified retail real estate throughout the United States. Its assets are held by and its operations are primarily conducted through, directly or indirectly, Seritage Growth Properties, L.P. (Operating Partnership). As of December 31, 2016, the Company’s portfolio included approximately 42.2 million square feet of gross leasable area (GLA), consisting of 235 owned properties totaling over 36.8 million square feet of GLA across 49 states and Puerto Rico, and interests in 31 joint venture properties totaling over 5.4 million square feet of GLA across 17 states. As of December 31, 2016, it included over 3,000 acres of land or approximately 13 acres per site for its owned properties. Its properties are primarily located in areas, including in California, Florida and Texas.

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