Comparing Equity Commonwealth (NYSE:EQC) and Mackenzie Realty Capital (NASDAQ:MKZR)

Mackenzie Realty Capital (NASDAQ:MKZR) and Equity Commonwealth (NYSE:EQC) are both small-cap real estate companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, risk, earnings, valuation and institutional ownership.

Earnings & Valuation

This table compares Mackenzie Realty Capital and Equity Commonwealth”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mackenzie Realty Capital	$22.06 million	0.17	-$25.92 million	($6.15)	-0.26
Equity Commonwealth	$58.43 million	2.90	$91.16 million	$0.39	4.05

Equity Commonwealth has higher revenue and earnings than Mackenzie Realty Capital. Mackenzie Realty Capital is trading at a lower price-to-earnings ratio than Equity Commonwealth, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

96.0% of Equity Commonwealth shares are owned by institutional investors. 6.3% of Mackenzie Realty Capital shares are owned by company insiders. Comparatively, 2.1% of Equity Commonwealth shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Mackenzie Realty Capital and Equity Commonwealth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mackenzie Realty Capital	-90.30%	-18.99%	-7.07%
Equity Commonwealth	82.00%	2.09%	1.96%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Mackenzie Realty Capital and Equity Commonwealth, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mackenzie Realty Capital	1	0	0	0	1.00
Equity Commonwealth	0	0	0	0	0.00

Volatility & Risk

Mackenzie Realty Capital has a beta of -0.76, suggesting that its stock price is 176% less volatile than the S&P 500. Comparatively, Equity Commonwealth has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500.

Summary

Equity Commonwealth beats Mackenzie Realty Capital on 10 of the 12 factors compared between the two stocks.

About Mackenzie Realty Capital

MacKenzie Realty Capital Inc. is a REIT which focused on investing in multifamily housing and office real estate properties located principally in the United States. MacKenzie Realty Capital Inc. is based in ORINDA, Calif.

About Equity Commonwealth

Equity Commonwealth (NYSE: EQC) is a Chicago based, internally managed and self-advised real estate investment trust (REIT) with commercial office properties in the United States. EQC's portfolio is comprised of four properties totaling 1.5 million square feet.