3 Stocks Pushing The Real Estate Industry Lower

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The Real Estate industry as a whole closed the day down 0.1% versus the S&P 500, which was unchanged. Laggards within the Real Estate industry included Vestin Realty Mortgage II ( VRTB), down 2.1%, China HGS Real Estate ( HGSH), down 2.8%, Gyrodyne Company of America ( GYRO), down 1.9%, Maui Land & Pineapple ( MLP), down 2.5% and Getty Realty ( GTY), down 1.7%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Getty Realty ( GTY) is one of the companies that pushed the Real Estate industry lower today. Getty Realty was down $0.34 (1.7%) to $19.83 on light volume. Throughout the day, 32,817 shares of Getty Realty exchanged hands as compared to its average daily volume of 65,400 shares. The stock ranged in price between $19.82-$20.22 after having opened the day at $20.22 as compared to the previous trading day's close of $20.17.

Getty Realty Corp. operates as a real estate investment trust (REIT) in the United States. The company engages in the ownership and leasing of retail motor fuel and convenience store properties, and petroleum distribution terminals. Getty Realty has a market cap of $673.3 million and is part of the financial sector. Shares are up 9.8% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Getty Realty a buy, 2 analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Getty Realty as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, revenue growth, reasonable valuation levels, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from TheStreet Ratings analysis on GTY go as follows:

  • GETTY REALTY CORP has improved earnings per share by 43.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, GETTY REALTY CORP increased its bottom line by earning $0.81 versus $0.40 in the prior year.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 10.3%. Since the same quarter one year prior, revenues slightly increased by 6.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • 42.14% is the gross profit margin for GETTY REALTY CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 39.30% significantly outperformed against the industry average.
  • Net operating cash flow has increased to $7.97 million or 20.74% when compared to the same quarter last year. Despite an increase in cash flow, GETTY REALTY CORP's average is still marginally south of the industry average growth rate of 29.99%.

You can view the full analysis from the report here: Getty Realty Ratings Report

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At the close, Maui Land & Pineapple ( MLP) was down $0.20 (2.5%) to $7.77 on light volume. Throughout the day, 5,048 shares of Maui Land & Pineapple exchanged hands as compared to its average daily volume of 35,300 shares. The stock ranged in price between $7.77-$7.92 after having opened the day at $7.90 as compared to the previous trading day's close of $7.97.

Maui Land & Pineapple Company, Inc., together with its subsidiaries, develops, sells, and manages residential, resort, commercial, and industrial real estate properties. The company operates through four segments: Real Estate, Leasing, Utilities, and Resort Amenities. Maui Land & Pineapple has a market cap of $150.8 million and is part of the financial sector. Shares are up 30.9% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Maui Land & Pineapple as a sell. Among the areas we feel are negative, one of the most important has been poor profit margins.

Highlights from TheStreet Ratings analysis on MLP go as follows:

  • The gross profit margin for MAUI LAND & PINEAPPLE CO is currently lower than what is desirable, coming in at 30.78%. Regardless of MLP's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, MLP's net profit margin of -36.81% significantly underperformed when compared to the industry average.
  • Despite the weak revenue results, MLP has significantly outperformed against the industry average of 39.8%. Since the same quarter one year prior, revenues slightly dropped by 6.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Net operating cash flow has increased to -$1.29 million or 26.83% when compared to the same quarter last year. Despite an increase in cash flow, MAUI LAND & PINEAPPLE CO's cash flow growth rate is still lower than the industry average growth rate of 60.22%.
  • MAUI LAND & PINEAPPLE CO has improved earnings per share by 44.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, MAUI LAND & PINEAPPLE CO continued to lose money by earning -$0.15 versus -$0.27 in the prior year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Real Estate Management & Development industry average. The net income increased by 49.9% when compared to the same quarter one year prior, rising from -$1.82 million to -$0.91 million.

You can view the full analysis from the report here: Maui Land & Pineapple Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

China HGS Real Estate ( HGSH) was another company that pushed the Real Estate industry lower today. China HGS Real Estate was down $0.12 (2.8%) to $4.11 on average volume. Throughout the day, 10,880 shares of China HGS Real Estate exchanged hands as compared to its average daily volume of 12,300 shares. The stock ranged in price between $4.11-$4.30 after having opened the day at $4.20 as compared to the previous trading day's close of $4.23.

China HGS Real Estate, Inc., through its subsidiary, Shaanxi Guangsha Investment and Development Group Co., Ltd, develops real estate properties in the People's Republic of China. It is involved in the construction and sale of residential apartments, parking lots, and commercial properties. China HGS Real Estate has a market cap of $193.7 million and is part of the financial sector. Shares are down 27.7% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates China HGS Real Estate as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, poor profit margins and a generally disappointing performance in the stock itself.

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Highlights from TheStreet Ratings analysis on HGSH go as follows:

  • HGSH's very impressive revenue growth greatly exceeded the industry average of 39.8%. Since the same quarter one year prior, revenues leaped by 157.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CHINA HGS REAL ESTATE INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, CHINA HGS REAL ESTATE INC increased its bottom line by earning $0.46 versus $0.11 in the prior year.
  • HGSH's debt-to-equity ratio is very low at 0.29 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.13 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The gross profit margin for CHINA HGS REAL ESTATE INC is currently lower than what is desirable, coming in at 33.12%. It has decreased from the same quarter the previous year. Despite the weak results of the gross profit margin, the net profit margin of 28.67% has significantly outperformed against the industry average.
  • Net operating cash flow has significantly decreased to -$3.65 million or 2084.23% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here: China HGS Real Estate Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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