Contrasting First Real Estate Investment Trust of New Jersey (OTCMKTS:FREVS) and Crombie Real Estate Investment Trust (OTCMKTS:CROMF)

First Real Estate Investment Trust of New Jersey (OTCMKTS:FREVS) and Crombie Real Estate Investment Trust (OTCMKTS:CROMF) are both real estate companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.

Dividends

First Real Estate Investment Trust of New Jersey pays an annual dividend of $1.56 per share and has a dividend yield of 8.9%. Crombie Real Estate Investment Trust pays an annual dividend of $0.89 per share and has a dividend yield of 9.2%. First Real Estate Investment Trust of New Jersey pays out 92.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Crombie Real Estate Investment Trust pays out -199.9% of its earnings in the form of a dividend. Crombie Real Estate Investment Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares First Real Estate Investment Trust of New Jersey and Crombie Real Estate Investment Trust’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Real Estate Investment Trust of New Jersey	N/A	N/A	N/A	$1.69	10.36
Crombie Real Estate Investment Trust	N/A	N/A	N/A	($0.44)	-21.75

Crombie Real Estate Investment Trust is trading at a lower price-to-earnings ratio than First Real Estate Investment Trust of New Jersey, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for First Real Estate Investment Trust of New Jersey and Crombie Real Estate Investment Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Real Estate Investment Trust of New Jersey	0	0	0	0	N/A
Crombie Real Estate Investment Trust	0	0	1	0	3.00

Crombie Real Estate Investment Trust has a consensus target price of $15.83, suggesting a potential upside of 63.93%. Given Crombie Real Estate Investment Trust’s higher possible upside, analysts clearly believe Crombie Real Estate Investment Trust is more favorable than First Real Estate Investment Trust of New Jersey.

Institutional & Insider Ownership

31.8% of Crombie Real Estate Investment Trust shares are held by institutional investors. 12.0% of First Real Estate Investment Trust of New Jersey shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares First Real Estate Investment Trust of New Jersey and Crombie Real Estate Investment Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Real Estate Investment Trust of New Jersey	N/A	N/A	N/A
Crombie Real Estate Investment Trust	N/A	N/A	N/A

Summary

Crombie Real Estate Investment Trust beats First Real Estate Investment Trust of New Jersey on 5 of the 8 factors compared between the two stocks.

About First Real Estate Investment Trust of New Jersey

First Real Estate Investment Trust of New Jersey, Inc. is a publicly traded (over-the-counter symbol FREVS) REIT organized in 1961. Its portfolio of residential and commercial properties are located in New Jersey and New York, with the largest concentration in northern New Jersey.

About Crombie Real Estate Investment Trust

Crombie invests in real estate that enriches local communities and enables long-term sustainable growth. As one of the country's leading owners, operators, and developers of quality real estate, Crombie's portfolio primarily includes grocery-anchored retail, retail-related industrial, and mixed-used residential properties in Canada's top urban and suburban markets. As at June 30, 2023, our portfolio contains 293 income-producing properties comprising approximately 18.6 million square feet, and a significant pipeline of future development projects.