Financial Survey: Howard Hughes (NYSE:HHH) versus Clipper Realty (NYSE:CLPR)

Clipper Realty (NYSE:CLPR) and Howard Hughes (NYSE:HHH) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.

Insider and Institutional Ownership

37.6% of Clipper Realty shares are held by institutional investors. Comparatively, 93.8% of Howard Hughes shares are held by institutional investors. 50.8% of Clipper Realty shares are held by company insiders. Comparatively, 33.0% of Howard Hughes shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Clipper Realty and Howard Hughes”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clipper Realty	$148.78 million	0.42	-$2.50 million	($0.25)	-15.46
Howard Hughes	$1.75 billion	2.14	-$550.95 million	$3.94	18.89

Clipper Realty has higher earnings, but lower revenue than Howard Hughes. Clipper Realty is trading at a lower price-to-earnings ratio than Howard Hughes, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings for Clipper Realty and Howard Hughes, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clipper Realty	1	1	0	0	1.50
Howard Hughes	0	0	2	0	3.00

Howard Hughes has a consensus price target of $82.00, indicating a potential upside of 10.20%. Given Howard Hughes’ stronger consensus rating and higher probable upside, analysts plainly believe Howard Hughes is more favorable than Clipper Realty.

Profitability

This table compares Clipper Realty and Howard Hughes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clipper Realty	-1.68%	-85.95%	-0.20%
Howard Hughes	6.57%	3.38%	1.03%

Volatility & Risk

Clipper Realty has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, Howard Hughes has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500.

Summary

Howard Hughes beats Clipper Realty on 12 of the 14 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 Howard Hughes

Howard Hughes Holdings Inc., together with its subsidiaries, operates as a real estate development company in the United States. It operates in four segments: Operating Assets; Master Planned Communities (MPCs); Seaport; and Strategic Developments. The Operating Assets segment consists of developed or acquired retail, office, and multi-family properties along with other retail investments. Its MPCs segment develops, sells, and leases residential and commercial land designated for long-term community development projects in and around Las Vegas, Nevada; Houston, Texas; and Phoenix, Arizona. The Seaport segment is involved in the landlord operations, managed businesses, and events and sponsorships services of its restaurant, retail, and entertain properties in Pier 17, New York City; Historic Area/Uplands; and Tin Building, as well as in 250 Water Street and in the Jean-Georges restaurants. The Strategic Development segment develops and redevelops residential condominiums and commercial properties. It serves homebuilders. Howard Hughes Holdings Inc. was founded in 2010 and is headquartered in The Woodlands, Texas.