Franklin Street Properties (NYSE:FSP) & UMH Properties (NYSE:UMH) Head-To-Head Analysis

UMH Properties (NYSE:UMH) and Franklin Street Properties (NYSE:FSP) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Analyst Ratings

This is a breakdown of current recommendations for UMH Properties and Franklin Street Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UMH Properties	0	2	2	0	2.50
Franklin Street Properties	0	0	0	0	0.00

UMH Properties currently has a consensus target price of $21.17, indicating a potential upside of 18.58%. Given UMH Properties’ stronger consensus rating and higher probable upside, research analysts plainly believe UMH Properties is more favorable than Franklin Street Properties.

Dividends

UMH Properties pays an annual dividend of $0.90 per share and has a dividend yield of 5.0%. Franklin Street Properties pays an annual dividend of $0.04 per share and has a dividend yield of 2.4%. UMH Properties pays out 3,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Franklin Street Properties pays out -8.0% of its earnings in the form of a dividend.

Insider & Institutional Ownership

75.4% of UMH Properties shares are held by institutional investors. Comparatively, 61.4% of Franklin Street Properties shares are held by institutional investors. 8.6% of UMH Properties shares are held by company insiders. Comparatively, 6.2% of Franklin Street Properties shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares UMH Properties and Franklin Street Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UMH Properties	11.81%	6.06%	1.92%
Franklin Street Properties	-43.90%	-7.79%	-5.30%

Valuation and Earnings

This table compares UMH Properties and Franklin Street Properties”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UMH Properties	$240.55 million	6.12	$8.01 million	$0.03	595.00
Franklin Street Properties	$120.11 million	1.47	-$52.72 million	($0.50)	-3.40

UMH Properties has higher revenue and earnings than Franklin Street Properties. Franklin Street Properties is trading at a lower price-to-earnings ratio than UMH Properties, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

UMH Properties has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Franklin Street Properties has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.

Summary

UMH Properties beats Franklin Street Properties on 15 of the 16 factors compared between the two stocks.

About UMH Properties

UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 135 manufactured home communities containing approximately 25,800 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan, Maryland, Alabama, South Carolina and Georgia. UMH also has an ownership interest in and operates two communities in Florida, containing 363 sites, through its joint venture with Nuveen Real Estate

About Franklin Street Properties

Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on infill and central business district (CBD) office properties in the U.S. Sunbelt and Mountain West, as well as select opportunistic markets. FSP seeks value-oriented investments with an eye towards long-term growth and appreciation, as well as current income. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes.