SmartCentres Real Estate Investment Trust (OTCMKTS:CWYUF) and Arkema (OTCMKTS:ARKAY) Direct inquiry


Arkema (OTCMKTS: ARKAYGet a rating) and SmartCentres Real Estate Investment Trust (OTCMKTS: CWYUFGet a rating) are both mid-tier commodity companies, but which is the best investment? We will compare the two companies based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Profitability

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

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 distributes 11.0% of its earnings in the form of a dividend. SmartCentres Real Estate Investment Trust pays out 107.2% of its earnings as dividends, suggesting it may not have enough earnings to cover its dividend payment in the future.

Valuation and benefits

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

Gross revenue Price/sales ratio Net revenue 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 4:44 p.m.

Arkema has higher revenues and profits than SmartCentres Real Estate Investment Trust. Arkema trades 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 indicates that large fund 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.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Arkema 2 5 4 0 2.18
SmartCentres Real Estate Investment Trust 0 6 2 0 2.25

Arkema currently has a consensus price target of $128.00, indicating upside potential 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 better consensus rating and possible upside, analysts clearly believe that SmartCentres Real Estate Investment Trust is more favorable than Arkema.

Volatility and risk

Arkema has a beta of 1.35, which means its share price is 35% more volatile than the S&P 500. In comparison, SmartCentres Real Estate Investment Trust has a beta of 1.11, which means its share 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 a rating)

Arkema SA 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, building renovation, DIY, durable goods, packaging and nonwoven applications; and provides technologies used in construction activities for businesses and individuals, including sealants, tiles, floor adhesives and waterproofing systems, and technologies used in industry, which includes the markets for automotive, textiles, glazing, flexible and rigid packaging and hygiene. The company also offers advanced materials composed of specialty polyamides and polyvinylidene fluoride; and performance additives, such as surfactants and specialty molecular sieves, organic peroxides, thiochemicals and hydrogen peroxide for use in automotive and transportation, oil and gas, renewable energy, consumer goods, electronics, construction, coatings, animal nutrition and water treatment . Additionally, it provides coating solutions including EU/US coating acrylics and resins; Sartomer photocure resins and Coatex rheology additives; decorative paints, industrial coatings and adhesives; and solutions for applications in the paper, superabsorbent, water treatment and oil and gas extraction, 3D printing and electronics industries. Additionally, the company offers fluorinated gases and acrylics; and industrial intermediate chemicals used in the construction, refrigeration and air conditioning, automotive, coatings and water treatment industries. Arkema SA was incorporated in 2003 and has its registered office in Colombes, France.

Company Profile SmartCentres Real Estate Investment Trust (Get a rating)

SmartCentres Real Estate Investment Trust is one of Canada’s largest fully integrated REITs, with a premier portfolio comprising 166 properties strategically located in communities across the country. SmartCentres has assets of approximately $10.4 billion and owns 33.8 million square feet of value-oriented retail space with an occupancy rate of 97.4%, across 3,500 acres of land across Canada. SmartCentres continues to focus on improving the lives of Canadians by planning and developing complete, connected, mixed-use communities on its existing commercial properties. A publicly announced $11.9 billion densification program ($5.4 billion for the SmartCentres share) represents the REIT’s current major development focus, with construction expected to begin over the next five years. This densification program includes rental apartments, condos, retirement homes and hotels, which will be developed under the SmartLiving banner, as well as retail businesses, offices and warehouses, which will be developed under the SmartCentres banner. The SmartCentres intensification program is expected to produce an additional 59.3 million square feet (27.9 million square feet for SmartCentres’ share) of space, including 27.1 million square feet (12.3 million square feet for the part of SmartCentres) whose construction has started or will start within the next five years. From malls to downtowns, SmartCentres is uniquely positioned to reshape the Canadian urban and urban-suburban landscape. This intensification program includes 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 the Transit City Condominiums, representing 2,789 residential units, continues to progress. Permanent closures of the first two phases of Transit City Condominiums began ahead of budget and ahead of schedule in August 2020 and as of September 30, 2020, 766 units (representing approximately 70% of the entire 1,110 units of the first and second phases) had closed the rest of the units due to close before the end of the year. Additionally, the 631 pre-sold third phase units along with 22 townhouses, all of which are sold and currently under construction, are expected to close in 2021. The sold out fourth and fifth phases representing 1,026 units are currently under construction and are expected to close. in 2023.



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