Cyrela Brazil Realty S.A. Empreendimentos e Participações (OTCMKTS:CYRBY) vs. Wheeler Real Estate Investment Trust (NASDAQ:WHLR) Critical Review

Profitability

This table compares Cyrela Brazil Realty S.A. Empreendimentos e Participações and Wheeler Real Estate Investment Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cyrela Brazil Realty S.A. Empreendimentos e Participações	19.37%	15.77%	7.66%
Wheeler Real Estate Investment Trust	-29.69%	N/A	-4.57%

Earnings & Valuation

This table compares Cyrela Brazil Realty S.A. Empreendimentos e Participações and Wheeler Real Estate Investment Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cyrela Brazil Realty S.A. Empreendimentos e Participações	$1.25 billion	0.88	$188.70 million	$0.71	3.97
Wheeler Real Estate Investment Trust	$103.20 million	0.02	-$4.69 million	($388.74)	-0.01

Cyrela Brazil Realty S.A. Empreendimentos e Participações has higher revenue and earnings than Wheeler Real Estate Investment Trust. Wheeler Real Estate Investment Trust is trading at a lower price-to-earnings ratio than Cyrela Brazil Realty S.A. Empreendimentos e Participações, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

35.3% of Wheeler Real Estate Investment Trust shares are owned by institutional investors. 40.6% of Wheeler Real Estate Investment Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Cyrela Brazil Realty S.A. Empreendimentos e Participações has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, Wheeler Real Estate Investment Trust has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500.

Dividends

Cyrela Brazil Realty S.A. Empreendimentos e Participações pays an annual dividend of $0.08 per share and has a dividend yield of 2.8%. Wheeler Real Estate Investment Trust pays an annual dividend of $1.68 per share and has a dividend yield of 49.9%. Cyrela Brazil Realty S.A. Empreendimentos e Participações pays out 11.3% of its earnings in the form of a dividend. Wheeler Real Estate Investment Trust pays out -0.4% 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. Wheeler Real Estate Investment Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Cyrela Brazil Realty S.A. Empreendimentos e Participações beats Wheeler Real Estate Investment Trust on 8 of the 13 factors compared between the two stocks.

About Cyrela Brazil Realty S.A. Empreendimentos e Participações

Cyrela Brazil Realty S.A. Empreendimentos e Participações develops and constructs residential properties in Brazil. It also provides real estate services, such as construction management and technical consultancy services. The company was founded in 1962 and is headquartered in São Paulo, Brazil.

About Wheeler Real Estate Investment Trust

Headquartered in Virginia Beach, Virginia, Wheeler Real Estate Investment Trust, Inc. is a fully integrated, self-managed commercial real estate investment trust (REIT) focused on owning and operating income-producing retail properties with a primary focus on grocery-anchored centers.