Reviewing Colony Credit Real Estate (NYSE:CLNC) and The Competition

Colony Credit Real Estate (NYSE: CLNC) is one of 245 publicly-traded companies in the “Real estate investment trusts” industry, but how does it weigh in compared to its competitors? We will compare Colony Credit Real Estate to similar businesses based on the strength of its dividends, institutional ownership, earnings, risk, analyst recommendations, profitability and valuation.

Profitability

This table compares Colony Credit Real Estate and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Colony Credit Real Estate -90.89% 2.81% 1.03%
Colony Credit Real Estate Competitors 19.56% 4.74% 2.63%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Colony Credit Real Estate and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Colony Credit Real Estate 0 0 1 0 3.00
Colony Credit Real Estate Competitors 2654 10299 10110 297 2.34

Colony Credit Real Estate currently has a consensus price target of $21.00, indicating a potential upside of 35.22%. As a group, “Real estate investment trusts” companies have a potential upside of 2.28%. Given Colony Credit Real Estate’s stronger consensus rating and higher possible upside, research analysts clearly believe Colony Credit Real Estate is more favorable than its competitors.

Volatility & Risk

Colony Credit Real Estate has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, Colony Credit Real Estate’s competitors have a beta of 0.76, indicating that their average stock price is 24% less volatile than the S&P 500.

Dividends

Colony Credit Real Estate pays an annual dividend of $1.74 per share and has a dividend yield of 11.2%. Colony Credit Real Estate pays out 248.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Real estate investment trusts” companies pay a dividend yield of 4.3% and pay out 71.0% of their earnings in the form of a dividend.

Insider & Institutional Ownership

23.9% of Colony Credit Real Estate shares are owned by institutional investors. Comparatively, 74.4% of shares of all “Real estate investment trusts” companies are owned by institutional investors. 0.3% of Colony Credit Real Estate shares are owned by company insiders. Comparatively, 6.4% of shares of all “Real estate investment trusts” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Colony Credit Real Estate and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Colony Credit Real Estate $115.54 million -$168.50 million 22.19
Colony Credit Real Estate Competitors $849.77 million $194.44 million 14.96

Colony Credit Real Estate’s competitors have higher revenue and earnings than Colony Credit Real Estate. Colony Credit Real Estate is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Colony Credit Real Estate competitors beat Colony Credit Real Estate on 10 of the 15 factors compared.

About Colony Credit Real Estate

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 headquartered in Los Angeles, California.

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