Critical Review: UMH Properties (NYSE:UMH) & Gadsden Properties (OTCMKTS:GADS)

Gadsden Properties (OTCMKTS:GADS) and UMH Properties (NYSE:UMH) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, earnings, institutional ownership and profitability.

Profitability

This table compares Gadsden Properties and UMH Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gadsden Properties	N/A	N/A	N/A
UMH Properties	10.47%	4.47%	1.69%

Analyst Ratings

This is a summary of recent ratings for Gadsden Properties and UMH Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gadsden Properties	0	0	0	0	0.00
UMH Properties	0	3	3	0	2.50

UMH Properties has a consensus price target of $18.40, indicating a potential upside of 15.80%. Given UMH Properties’ stronger consensus rating and higher possible upside, analysts clearly believe UMH Properties is more favorable than Gadsden Properties.

Insider and Institutional Ownership

75.4% of UMH Properties shares are owned by institutional investors. 5.0% of Gadsden Properties shares are owned by company insiders. Comparatively, 8.8% of UMH Properties 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.

Risk and Volatility

Gadsden Properties has a beta of -8.8, indicating that its share price is 980% less volatile than the S&P 500. Comparatively, UMH Properties has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.

Earnings & Valuation

This table compares Gadsden Properties and UMH Properties”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gadsden Properties	N/A	N/A	N/A	N/A	N/A
UMH Properties	$240.55 million	5.63	$21.64 million	$0.08	198.63

UMH Properties has higher revenue and earnings than Gadsden Properties.

Summary

UMH Properties beats Gadsden Properties on 10 of the 10 factors compared between the two stocks.

About Gadsden Properties

Gadsden Properties, Inc. is a Nevada corporation that was formed on December 28, 2010. Gadsden concentrates primarily on investments in high quality income-producing assets, residential developments and other opportunistic commercial properties in secondary and tertiary markets across the United States. The Company derives value from smaller, flexible retail investments that range from $5 million to $50 million and off-market mixed-use properties ranging from $50 million to $250 million. As a result of this chosen strategy, we believe that Gadsden is developing a unique competitive advantage that generally allows the Company to invest in markets and assets that are often overlooked by larger institutional investors, such as publicly-traded REITs and other large institutional investors. As part of its strategy, Gadsden attracts specific sellers that prefer the tax deferral advantages offered through issuing operating partnership units in exchange for their properties. These real estate assets are typically operated by independent owners that are seeking to monetize their real estate holdings, and who are typically not well capitalized or well-seasoned real estate operators. These transactions create a variety of outcomes for Gadsden and the sellers typically resulting in lease-up and value-added opportunities that may not be otherwise achieved.

About UMH Properties

UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 135 manufactured home communities containing approximately 25,800 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan, Maryland, Alabama, South Carolina and Georgia. UMH also has an ownership interest in and operates two communities in Florida, containing 363 sites, through its joint venture with Nuveen Real Estate