Clipper Realty (NYSE:CLPR – Get Free Report) and Orchid Island Capital (NYSE:ORC – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, valuation, earnings and risk.
Institutional and Insider Ownership
37.6% of Clipper Realty shares are held by institutional investors. Comparatively, 32.7% of Orchid Island Capital shares are held by institutional investors. 50.8% of Clipper Realty shares are held by company insiders. Comparatively, 0.6% of Orchid Island Capital shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations for Clipper Realty and Orchid Island Capital, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Clipper Realty | 1 | 1 | 0 | 0 | 1.50 |
Orchid Island Capital | 0 | 1 | 1 | 0 | 2.50 |
Dividends
Clipper Realty pays an annual dividend of $0.38 per share and has a dividend yield of 9.3%. Orchid Island Capital pays an annual dividend of $1.44 per share and has a dividend yield of 18.0%. Clipper Realty pays out -131.0% of its earnings in the form of a dividend. Orchid Island Capital pays out 137.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Profitability
This table compares Clipper Realty and Orchid Island Capital’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Clipper Realty | -2.17% | -85.95% | -0.25% |
Orchid Island Capital | N/A | -4.08% | -0.46% |
Risk & Volatility
Clipper Realty has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Orchid Island Capital has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500.
Valuation & Earnings
This table compares Clipper Realty and Orchid Island Capital”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Clipper Realty | $138.21 million | 0.47 | -$5.90 million | ($0.29) | -14.02 |
Orchid Island Capital | $177.57 million | 3.60 | -$39.23 million | $1.05 | 7.61 |
Clipper Realty has higher earnings, but lower revenue than Orchid Island Capital. Clipper Realty is trading at a lower price-to-earnings ratio than Orchid Island Capital, indicating that it is currently the more affordable of the two stocks.
Summary
Orchid Island Capital beats Clipper Realty on 11 of the 16 factors compared between the two stocks.
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.
About Orchid Island Capital
Orchid Island Capital, Inc., a specialty finance company, invests in residential mortgage-backed securities (RMBS) in the United States. The company’s RMBS is backed by single-family residential mortgage loans, referred as Agency RMBS. Its portfolio includes traditional pass-through Agency RMBS, such as mortgage pass through certificates and collateralized mortgage obligations; and structured Agency RMBS comprising interest only securities, inverse interest only securities, and principal only securities. The company has elected to be taxed as a real estate investment trust (REIT) for the United States federal income tax purposes. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to stockholders, if it annually distributes dividends equal to at least 90% of its REIT taxable income to its stockholders. Orchid Island Capital, Inc. was incorporated in 2010 and is headquartered in Vero Beach, Florida.
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