Contrasting American Realty Investors (NYSE:ARL) & Gyrodyne (NASDAQ:GYRO)
by Danessa Lincoln · The Markets DailyGyrodyne (NASDAQ:GYRO – Get Free Report) and American Realty Investors (NYSE:ARL – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, valuation and earnings.
Analyst Ratings
This is a breakdown of current ratings and target prices for Gyrodyne and American Realty Investors, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gyrodyne | 0 | 0 | 0 | 0 | 0.00 |
| American Realty Investors | 1 | 0 | 0 | 0 | 1.00 |
Valuation & Earnings
This table compares Gyrodyne and American Realty Investors”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gyrodyne | N/A | N/A | N/A | N/A | N/A |
| American Realty Investors | $50.01 million | 4.51 | $15.70 million | $0.76 | 18.36 |
American Realty Investors has higher revenue and earnings than Gyrodyne .
Volatility and Risk
Gyrodyne has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, American Realty Investors has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500.
Profitability
This table compares Gyrodyne and American Realty Investors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gyrodyne | N/A | N/A | N/A |
| American Realty Investors | 24.21% | 0.10% | 0.07% |
Insider & Institutional Ownership
71.4% of Gyrodyne shares are owned by institutional investors. 12.1% of Gyrodyne shares are owned by insiders. Comparatively, 90.8% of American Realty Investors shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
American Realty Investors beats Gyrodyne on 7 of the 8 factors compared between the two stocks.
About Gyrodyne
Gyrodyne, LLC owns and manages a diversified portfolio of real estate properties comprising office, industrial and service-oriented properties in the New York metropolitan area. Gyrodyne owns a 63 acre site approximately 50 miles east of New York City on the north shore of Long Island, which includes industrial and office buildings and undeveloped property which is the subject of plans to seek value-enhancing entitlements. Gyrodyne also owns a medical office park in Cortlandt Manor, New York which is also the subject of a subdivision application. Gyrodyne's common shares are traded on the NASDAQ Stock Market under the symbol GYRO.
About American Realty Investors
American Realty Investors, Inc., together with its subsidiaries, acquires, develops, owns, and manages multifamily and commercial real estate properties in the Southern United States. It operates through two segments, Residential and Commercial. The company leases apartment units to residents; and office, industrial, and retail space to various for-profit businesses, as well as local, state, and federal agencies. It also offers tenant services, including parking and storage space rental; and sells land and properties. The company was incorporated in 1999 and is based in Dallas, Texas. American Realty Investors, Inc. is a subsidiary of Realty Advisors, Inc.