Analyzing Easterly Government Properties (NYSE:DEA) and Mackenzie Realty Capital (NASDAQ:MKZR)

Mackenzie Realty Capital (NASDAQ:MKZR) and Easterly Government Properties (NYSE:DEA) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, earnings, analyst recommendations, institutional ownership and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Mackenzie Realty Capital and Easterly Government Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mackenzie Realty Capital	1	0	0	0	1.00
Easterly Government Properties	2	2	2	0	2.00

Easterly Government Properties has a consensus price target of $24.99, suggesting a potential upside of 4.83%. Given Easterly Government Properties’ stronger consensus rating and higher probable upside, analysts clearly believe Easterly Government Properties is more favorable than Mackenzie Realty Capital.

Earnings & Valuation

This table compares Mackenzie Realty Capital and Easterly Government Properties”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mackenzie Realty Capital	$22.06 million	0.35	-$25.92 million	($10.80)	-0.36
Easterly Government Properties	$302.05 million	3.64	$19.55 million	$0.30	79.47

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

Risk & Volatility

Mackenzie Realty Capital has a beta of -1.12, suggesting that its share price is 212% less volatile than the S&P 500. Comparatively, Easterly Government Properties has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.

Institutional and Insider Ownership

86.5% of Easterly Government Properties shares are held by institutional investors. 6.3% of Mackenzie Realty Capital shares are held by insiders. Comparatively, 7.8% of Easterly Government Properties 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 Mackenzie Realty Capital and Easterly Government Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mackenzie Realty Capital	-122.81%	-23.62%	-9.13%
Easterly Government Properties	4.24%	1.00%	0.42%

Summary

Easterly Government Properties beats Mackenzie Realty Capital on 14 of the 14 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 Easterly Government Properties

Easterly Government Properties, Inc. (NYSE: DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. Easterly’s experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased to such agencies either directly or through the U.S. General Services Administration (GSA).