Elme Communities (NYSE:ELME – Get Free Report) and Creative Media & Community Trust Co. (NASDAQ:CMCT – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.
Insider and Institutional Ownership
87.9% of Elme Communities shares are held by institutional investors. Comparatively, 28.3% of Creative Media & Community Trust Co. shares are held by institutional investors. 1.2% of Elme Communities shares are held by company insiders. Comparatively, 45.7% of Creative Media & Community Trust Co. shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Elme Communities and Creative Media & Community Trust Co.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Elme Communities | -5.51% | -1.17% | -0.70% |
| Creative Media & Community Trust Co. | -18.42% | N/A | -2.64% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Elme Communities | $239.52 million | 5.27 | -$52.98 million | ($0.15) | -95.67 |
| Creative Media & Community Trust Co. | $126.52 million | 0.07 | -$48.49 million | ($28.77) | -0.03 |
Creative Media & Community Trust Co. has lower revenue, but higher earnings than Elme Communities. Elme Communities is trading at a lower price-to-earnings ratio than Creative Media & Community Trust Co., indicating that it is currently the more affordable of the two stocks.
Dividends
Elme Communities pays an annual dividend of $0.72 per share and has a dividend yield of 5.0%. Creative Media & Community Trust Co. pays an annual dividend of $1.60 per share and has a dividend yield of 166.7%. Elme Communities pays out -480.0% of its earnings in the form of a dividend. Creative Media & Community Trust Co. pays out -5.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Volatility and Risk
Elme Communities has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, Creative Media & Community Trust Co. has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Elme Communities and Creative Media & Community Trust Co., as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Elme Communities | 0 | 4 | 0 | 0 | 2.00 |
| Creative Media & Community Trust Co. | 0 | 1 | 0 | 0 | 2.00 |
Elme Communities presently has a consensus target price of $17.00, indicating a potential upside of 18.47%. Creative Media & Community Trust Co. has a consensus target price of $40.00, indicating a potential upside of 4,066.67%. Given Creative Media & Community Trust Co.’s higher possible upside, analysts clearly believe Creative Media & Community Trust Co. is more favorable than Elme Communities.
Summary
Elme Communities beats Creative Media & Community Trust Co. on 8 of the 14 factors compared between the two stocks.
About Elme Communities
Elme Communities is committed to elevating what home can be for middle-income renters by providing a higher level of quality, service, and experience. The Company is a multifamily real estate investment trust that owns and operates approximately 9,400 apartment homes in the Washington, DC metro and the Atlanta metro regions, and owns approximately 300,000 square feet of commercial space. Focused on providing quality, affordable homes to a deep, solid, and underserved base of mid-market demand, Elme Communities is building long-term value for shareholders.
About Creative Media & Community Trust Co.
Creative Media & Community Trust Corporation (the Company), is a Maryland corporation and real estate investment trust (REIT). The Company primarily acquires, develops, owns and operates both premier multifamily properties situated in vibrant communities throughout the United States and Class A and creative office real assets in markets with similar business and employment characteristics to its multifamily investments. The Company also owns one hotel in northern California and a lending platform that originates loans under the Small Business Administration (SBA) 7(a) loan program. The Company seeks to apply the expertise of CIM Group Management, LLC and its affiliates (collectively, CIM Group) to the acquisition, development and operation of premier multifamily properties and creative office assets that cater to rapidly growing industries such as technology, media and entertainment in vibrant and emerging communities throughout the United States.
Receive News & Ratings for Elme Communities Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Elme Communities and related companies with MarketBeat.com's FREE daily email newsletter.
