Comparing American Realty Investors (NYSE:ARL) and J. W. Mays (NASDAQ:MAYS)

American Realty Investors (NYSE:ARL) and J. W. Mays (NASDAQ:MAYS) are both small-cap real estate companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.

Risk & Volatility

American Realty Investors has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, J. W. Mays has a beta of 0.2, suggesting that its stock price is 80% less volatile than the S&P 500.

Insider & Institutional Ownership

3.2% of J. W. Mays shares are held by institutional investors. 90.8% of American Realty Investors shares are held by company insiders. Comparatively, 40.8% of J. W. Mays shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares American Realty Investors and J. W. Mays”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Realty Investors	$50.01 million	7.22	$15.70 million	$0.52	42.98
J. W. Mays	$21.09 million	4.03	-$1.40 million	($0.70)	-60.23

American Realty Investors has higher revenue and earnings than J. W. Mays. J. W. Mays is trading at a lower price-to-earnings ratio than American Realty Investors, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for American Realty Investors and J. W. Mays, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Realty Investors	0	1	0	0	2.00
J. W. Mays	1	0	0	0	1.00

Profitability

This table compares American Realty Investors and J. W. Mays’ 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%
J. W. Mays	-6.64%	-2.70%	-1.55%

Summary

American Realty Investors beats J. W. Mays on 11 of the 12 factors compared between the two stocks.

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.

About J. W. Mays

J.W. Mays, Inc. owns, operates, and leases commercial real estate properties in United States. The company's properties are located in Brooklyn, Jamaica, Fishkill, Levittown, and Massapequa of New York; and Circleville of Ohio. The company was founded in 1924 and is based in Brooklyn, New York.