Contrasting Clipper Realty (NYSE:CLPR) & Howard Hughes (NYSE:HHH)

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

Volatility & Risk

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

Valuation and Earnings

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

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

Clipper Realty has lower revenue, but higher earnings 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.

Institutional and Insider Ownership

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

Profitability

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

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Howard Hughes and Clipper Realty, as reported by MarketBeat.

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

Howard Hughes presently 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, equities analysts clearly believe Howard Hughes is more favorable than Clipper Realty.

Summary

Howard Hughes beats Clipper Realty on 12 of the 14 factors compared between the two stocks.

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.

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.