SmartCentres Real Estate Investment Trust (OTCMKTS:CWYUF) and Arkema (OTCMKTS:ARKAY) Head to Head Survey

Arkema (OTCMKTS:ARKAYGet Rating) and SmartCentres Real Estate Investment Trust (OTCMKTS:CWYUFGet Rating) are both mid-cap basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Profitability

This table compares Arkema and SmartCentres Real Estate Investment Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arkema 15.10% 17.84% 9.01%
SmartCentres Real Estate Investment Trust N/A N/A N/A

Dividends

Arkema pays an annual dividend of $2.56 per share and has a dividend yield of 2.1%. SmartCentres Real Estate Investment Trust pays an annual dividend of $1.48 per share and has a dividend yield of 6.5%. Arkema pays out 11.0% of its earnings in the form of a dividend. SmartCentres Real Estate Investment Trust pays out 107.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares Arkema and SmartCentres Real Estate Investment Trust’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Arkema $11.26 billion 0.79 $1.55 billion $23.27 5.16
SmartCentres Real Estate Investment Trust $599.51 million 6.74 $56.20 million $1.38 16.44

Arkema has higher revenue and earnings than SmartCentres Real Estate Investment Trust. Arkema is trading at a lower price-to-earnings ratio than SmartCentres Real Estate Investment Trust, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

0.1% of Arkema shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Arkema and SmartCentres Real Estate Investment Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arkema 2 5 4 0 2.18
SmartCentres Real Estate Investment Trust 0 6 2 0 2.25

Arkema presently has a consensus price target of $128.00, indicating a potential upside of 6.67%. SmartCentres Real Estate Investment Trust has a consensus price target of $33.86, indicating a potential upside of 49.25%. Given SmartCentres Real Estate Investment Trust’s stronger consensus rating and higher possible upside, analysts plainly believe SmartCentres Real Estate Investment Trust is more favorable than Arkema.

Volatility & Risk

Arkema has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, SmartCentres Real Estate Investment Trust has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.

Summary

Arkema beats SmartCentres Real Estate Investment Trust on 10 of the 15 factors compared between the two stocks.

Arkema Company Profile (Get Rating)

Arkema S.A. manufactures and sells specialty chemicals and advanced materials worldwide. The company operates through Adhesive Solutions, Advanced Materials, Coating Solutions, and Intermediates segments. It provides adhesive solutions for construction, renovation of buildings, DIY, durable goods, and packaging and non-woven applications; and supplies technologies used in building activities for businesses and individuals, including sealants, tiles, flooring adhesives and waterproofing systems, and technologies used in industry, which include automotive, textiles, glazing, flexible and rigid packaging, and hygiene markets. The company also offers advanced materials consisting of specialty polyamides and polyvinylidene fluoride; and performance additives, such as specialty surfactants and molecular sieves, organic peroxides, thiochemicals, and hydrogen peroxide for use in automotive and transportation, oil and gas, renewable energies, consumer goods, electronics, construction, coatings, animal nutrition, and water treatment sectors. In addition, it provides coating solutions comprising EU/US acrylics and coating resins; sartomer photocure resins and coatex rheology additives; decorative paints, industrial coatings, and adhesives; and solutions for applications in the paper, superabsorbents, water treatment and oil and gas extraction, and 3D printing and electronics industries. Further, the company offers fluorogases and acrylics; and industrial intermediate chemicals used in construction, refrigeration and air conditioning, automotive, coatings, and water treatment sectors. Arkema S.A. was incorporated in 2003 and is headquartered in Colombes, France.

SmartCentres Real Estate Investment Trust Company Profile (Get Rating)

SmartCentres Real Estate Investment Trust is one of Canada's largest fully integrated REITs, with a best-in-class portfolio featuring 166 strategically located properties in communities across the country. SmartCentres has approximately $10.4 billion in assets and owns 33.8 million square feet of income producing value-oriented retail space with 97.4% occupancy, on 3,500 acres of owned land across Canada. SmartCentres continues to focus on enhancing the lives of Canadians by planning and developing complete, connected, mixed-use communities on its existing retail properties. A publicly announced $11.9 billion intensification program ($5.4 billion at SmartCentres' share) represents the REIT's current major development focus on which construction is expected to commence within the next five years. This intensification program consists of rental apartments, condos, seniors' residences and hotels, to be developed under the SmartLiving banner, and retail, office, and storage facilities, to be developed under the SmartCentres banner. SmartCentres' intensification program is expected to produce an additional 59.3 million square feet (27.9 million square feet at SmartCentres' share) of space, 27.1 million square feet (12.3 million square feet at SmartCentres' share) of which has or will commence construction within next five years. From shopping centres to city centres, SmartCentres is uniquely positioned to reshape the Canadian urban and urban-suburban landscape. Included in this intensification program is the Trust's share of SmartVMC which, when completed, is expected to include approximately 11.0 million square feet of mixed-use space in Vaughan, Ontario. Construction of the first five sold-out phases of Transit City Condominiums that represent 2,789 residential units continues to progress. Final closings of the first two phases of Transit City Condominiums began ahead of budget and ahead of schedule in August 2020 and as at September 30, 2020, 766 units (representing approximately 70% of all 1,110 units in the first and second phases) had closed with the balance of units expected to close before year end. In addition, the presold 631 units in the third phase along with 22 townhomes, all of which are sold out and currently under construction, are expected to close in 2021. The fourth and fifth sold-out phases representing 1,026 units are currently under construction and are expected to close in 2023.

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