Financial Analysis: Cousins Properties (CUZ) vs. Colony Credit Real Estate (CLNC)

Cousins Properties (NYSE:CUZ) and Colony Credit Real Estate (NYSE:CLNC) are both mid-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, risk, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares Cousins Properties and Colony Credit Real Estate’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cousins Properties $475.21 million 8.25 $79.16 million $0.63 14.81
Colony Credit Real Estate $164.75 million 13.34 $127.19 million N/A N/A

Colony Credit Real Estate has lower revenue, but higher earnings than Cousins Properties.

Dividends

Cousins Properties pays an annual dividend of $0.26 per share and has a dividend yield of 2.8%. Colony Credit Real Estate pays an annual dividend of $1.74 per share and has a dividend yield of 10.0%. Cousins Properties pays out 41.3% of its earnings in the form of a dividend. Cousins Properties has raised its dividend for 5 consecutive years.

Profitability

This table compares Cousins Properties and Colony Credit Real Estate’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cousins Properties 16.76% 2.81% 1.91%
Colony Credit Real Estate 12.88% 5.75% 2.32%

Insider and Institutional Ownership

22.2% of Colony Credit Real Estate shares are owned by institutional investors. 0.9% of Cousins Properties shares are owned by 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Cousins Properties and Colony Credit Real Estate, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cousins Properties 0 1 2 0 2.67
Colony Credit Real Estate 0 0 1 0 3.00

Cousins Properties currently has a consensus price target of $9.92, indicating a potential upside of 6.29%. Colony Credit Real Estate has a consensus price target of $23.00, indicating a potential upside of 32.79%. Given Colony Credit Real Estate’s stronger consensus rating and higher possible upside, analysts plainly believe Colony Credit Real Estate is more favorable than Cousins Properties.

Summary

Colony Credit Real Estate beats Cousins Properties on 9 of the 14 factors compared between the two stocks.

Cousins Properties Company Profile

Cousins Properties is a fully integrated, self-administered and self-managed real estate investment trust (REIT). The Company, based in Atlanta, GA and acting through its operating partnership, Cousins Properties LP, primarily invests in Class A office towers located in high-growth Sun Belt markets. Founded in 1958, Cousins creates shareholder value through its extensive expertise in the development, acquisition, leasing and management of high-quality real estate assets. The Company has a comprehensive strategy in place based on a simple platform, trophy assets and opportunistic investments.

Colony Credit Real Estate Company Profile

Colony Credit Real Estate, Inc. operates as a commercial real estate (CRE) credit real estate investment trust in the United States. It focuses on originating, acquiring, financing, and managing a portfolio of CRE senior mortgage loans, mezzanine loans, preferred equity, debt securities, and net leased properties. The company qualifies as a real estate investment trust 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 formerly known as Colony NorthStar Credit Real Estate, Inc. and changed its name to Colony Credit Real Estate, Inc. in June 2018. Colony Credit Real Estate, Inc. was founded in 2017 and is based in Los Angeles, California.

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