Critical Analysis: UMH PROPERTIES/SH SH (NYSE:UMH) vs. CAPSTEAD MTG CO/SH (NYSE:CMO)

UMH PROPERTIES/SH SH (NYSE:UMH) and CAPSTEAD MTG CO/SH (NYSE:CMO) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.

Profitability

This table compares UMH PROPERTIES/SH SH and CAPSTEAD MTG CO/SH’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
UMH PROPERTIES/SH SH -23.38% -22.16% -3.65%
CAPSTEAD MTG CO/SH -18.32% 6.72% 0.45%

Analyst Ratings

This is a summary of current recommendations and price targets for UMH PROPERTIES/SH SH and CAPSTEAD MTG CO/SH, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UMH PROPERTIES/SH SH 0 0 4 0 3.00
CAPSTEAD MTG CO/SH 0 2 0 0 2.00

UMH PROPERTIES/SH SH presently has a consensus price target of $18.67, indicating a potential upside of 26.98%. CAPSTEAD MTG CO/SH has a consensus price target of $8.50, indicating a potential upside of 12.43%. Given UMH PROPERTIES/SH SH’s stronger consensus rating and higher possible upside, analysts plainly believe UMH PROPERTIES/SH SH is more favorable than CAPSTEAD MTG CO/SH.

Risk and Volatility

UMH PROPERTIES/SH SH has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, CAPSTEAD MTG CO/SH has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.

Insider and Institutional Ownership

59.4% of UMH PROPERTIES/SH SH shares are held by institutional investors. Comparatively, 74.0% of CAPSTEAD MTG CO/SH shares are held by institutional investors. 10.8% of UMH PROPERTIES/SH SH shares are held by insiders. Comparatively, 2.0% of CAPSTEAD MTG CO/SH shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

UMH PROPERTIES/SH SH pays an annual dividend of $0.72 per share and has a dividend yield of 4.9%. CAPSTEAD MTG CO/SH pays an annual dividend of $0.48 per share and has a dividend yield of 6.3%. UMH PROPERTIES/SH SH pays out 97.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares UMH PROPERTIES/SH SH and CAPSTEAD MTG CO/SH’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
UMH PROPERTIES/SH SH $129.59 million 4.59 -$36.22 million $0.74 19.86
CAPSTEAD MTG CO/SH $276.58 million 2.59 $50.07 million N/A N/A

CAPSTEAD MTG CO/SH has higher revenue and earnings than UMH PROPERTIES/SH SH.

Summary

CAPSTEAD MTG CO/SH beats UMH PROPERTIES/SH SH on 9 of the 15 factors compared between the two stocks.

UMH PROPERTIES/SH SH Company Profile

UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 118 manufactured home communities containing approximately 21,500 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan and Maryland. In addition, the Company owns a portfolio of REIT securities.

CAPSTEAD MTG CO/SH Company Profile

Capstead Mortgage Corporation operates as a real estate investment trust (REIT) in the United States. It invests in a portfolio of residential mortgage pass-through securities primarily consisting of short-duration adjustable-rate mortgage securities issued and guaranteed by government-sponsored enterprises, or by an agency of the federal government. The company qualifies as a REIT for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 1985 and is headquartered in Dallas, Texas.

Receive News & Ratings for UMH PROPERTIES/SH SH Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for UMH PROPERTIES/SH SH and related companies with MarketBeat.com's FREE daily email newsletter.