Analyzing Resource Capital (RSO) and Mack Cali Realty (NYSE:CLI)

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Mack Cali Realty (NYSE:CLI) and Resource Capital (NYSE:RSO) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.

Dividends

Mack Cali Realty pays an annual dividend of $0.80 per share and has a dividend yield of 3.9%. Resource Capital pays an annual dividend of $0.20 per share. Mack Cali Realty pays out 35.9% of its earnings in the form of a dividend. Mack Cali Realty has increased its dividend for 3 consecutive years. Mack Cali Realty is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Mack Cali Realty and Resource Capital’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mack Cali Realty $616.20 million 3.00 $23.18 million $2.23 9.18
Resource Capital N/A N/A N/A N/A N/A

Mack Cali Realty has higher revenue and earnings than Resource Capital.

Institutional & Insider Ownership

98.7% of Mack Cali Realty shares are owned by institutional investors. Comparatively, 51.0% of Resource Capital shares are owned by institutional investors. 6.8% of Mack Cali Realty shares are owned by company insiders. Comparatively, 4.8% of Resource Capital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Mack Cali Realty and Resource Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mack Cali Realty 6.81% 2.19% 0.75%
Resource Capital N/A N/A N/A

Analyst Ratings

This is a summary of recent ratings for Mack Cali Realty and Resource Capital, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mack Cali Realty 1 4 1 0 2.00
Resource Capital 0 0 1 0 3.00

Mack Cali Realty currently has a consensus price target of $21.80, indicating a potential upside of 6.45%.

Summary

Mack Cali Realty beats Resource Capital on 8 of the 10 factors compared between the two stocks.

About Mack Cali Realty

One of the country's leading real estate investment trusts (REITs), Mack-Cali Realty Corporation is an owner, manager and developer of premier office and multifamily properties in select waterfront and transit-oriented markets throughout the Northeast. Mack-Cali is headquartered in Jersey City, New Jersey, and is the visionary behind the city's flourishing waterfront, where the company is leading development, improvement and place-making initiatives for Harborside, a master-planned destination comprised of class A office, luxury apartments, diverse retail and restaurants, and public spaces. A fully-integrated and self-managed company, Mack-Cali has provided world-class management, leasing, and development services throughout New Jersey and the surrounding region for two decades. By regularly investing in its properties and innovative lifestyle amenity packages, Mack-Cali creates environments that empower tenants and residents to reimagine the way they work and live.

About Resource Capital

Resource Capital Corp., a real estate investment trust, primarily focuses on the origination, holding, and management of commercial mortgage loans and commercial real estate-related debt investments in the United States. It invests in commercial real estate-related assets, such as first mortgage loans, first priority interests in first mortgage loans, subordinated interests in first mortgage loans, mezzanine debt, and commercial mortgage-backed securities. The company is also involved in the investment of commercial finance assets, including asset-backed securities, debt tranches of collateralized debt and loan obligations, structured note investments, syndicated corporate loans, and preferred equity investment in a commercial leasing enterprise. It qualifies as a real estate investment trust (REIT) for federal income tax purposes. The company generally would not be subject to federal corporate income tax to the extent that it distributes 100% of its REIT taxable income. Resource Capital Corp. was founded in 2005 and is based in New York, New York.

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