Financial Analysis: American Realty Investors (ARL) & Its Competitors

American Realty Investors (NYSE:ARL) is one of 329 publicly-traded companies in the “Real Estate Management & Development” industry, but how does it contrast to its competitors? We will compare American Realty Investors to related businesses based on the strength of its institutional ownership, analyst recommendations, dividends, profitability, valuation, earnings and risk.

Institutional & Insider Ownership

32.5% of shares of all “Real Estate Management & Development” companies are held by institutional investors. 90.8% of American Realty Investors shares are held by insiders. Comparatively, 27.1% of shares of all “Real Estate Management & Development” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

American Realty Investors has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, American Realty Investors’ competitors have a beta of -0.22, meaning that their average stock price is 122% less volatile than the S&P 500.

Profitability

This table compares American Realty Investors and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Realty Investors	16.36%	-0.37%	-0.28%
American Realty Investors Competitors	-263.80%	-682.73%	-1.07%

Valuation & Earnings

This table compares American Realty Investors and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
American Realty Investors	$50.01 million	$15.70 million	36.72
American Realty Investors Competitors	$2.84 billion	-$400.32 million	9.90

American Realty Investors’ competitors have higher revenue, but lower earnings than American Realty Investors. American Realty Investors is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current recommendations and price targets for American Realty Investors and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Realty Investors	0	1	0	0	2.00
American Realty Investors Competitors	1579	4684	7440	207	2.45

As a group, “Real Estate Management & Development” companies have a potential upside of 21.68%. Given American Realty Investors’ competitors stronger consensus rating and higher probable upside, analysts clearly believe American Realty Investors has less favorable growth aspects than its competitors.

Summary

American Realty Investors beats its competitors on 7 of the 13 factors compared.

About American Realty Investors

American Realty Investors, Inc., together with its subsidiaries, acquires, develops, owns, and manages multifamily and commercial real estate properties in the Southern United States. It operates through two segments, Residential and Commercial. The company leases apartment units to residents; and office, industrial, and retail space to various for-profit businesses, as well as local, state, and federal agencies. It also offers tenant services, including parking and storage space rental; and sells land and properties. The company was incorporated in 1999 and is based in Dallas, Texas. American Realty Investors, Inc. is a subsidiary of Realty Advisors, Inc.