3 Stocks Pushing The Real Estate Industry Lower

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

The Real Estate industry as a whole closed the day down 1.0% versus the S&P 500, which was up 0.2%. Laggards within the Real Estate industry included BRASILAGRO - CIA Bras de Prop Agricolas ( LND), down 2.1%, China Housing & Land Development ( CHLN), down 3.0%, InnSuites Hospitality ( IHT), down 10.2%, Urstadt Biddle Properties ( UBP), down 1.7% and Transcontinental Realty Investors ( TCI), down 2.2%.

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

Altisource Portfolio Solutions ( ASPS) is one of the companies that pushed the Real Estate industry lower today. Altisource Portfolio Solutions was down $6.40 (23.1%) to $21.26 on heavy volume. Throughout the day, 2,151,395 shares of Altisource Portfolio Solutions exchanged hands as compared to its average daily volume of 721,900 shares. The stock ranged in price between $21.08-$26.96 after having opened the day at $25.00 as compared to the previous trading day's close of $27.66.

Altisource Portfolio Solutions S.A. operates as a marketplace and transaction solutions provider for the real estate, mortgage, and consumer debt industries in the United States. Altisource Portfolio Solutions has a market cap of $560.7 million and is part of the services sector. Shares are down 18.1% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates Altisource Portfolio Solutions a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Altisource Portfolio Solutions as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and generally higher debt management risk.

Highlights from TheStreet Ratings analysis on ASPS go as follows:

  • The revenue growth greatly exceeded the industry average of 5.6%. Since the same quarter one year prior, revenues rose by 36.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ALTISOURCE PORTFOLIO SOLTNS has improved earnings per share by 26.1% 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. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ALTISOURCE PORTFOLIO SOLTNS increased its bottom line by earning $5.19 versus $4.43 in the prior year. This year, the market expects an improvement in earnings ($6.89 versus $5.19).
  • 36.35% is the gross profit margin for ALTISOURCE PORTFOLIO SOLTNS which we consider to be strong. Regardless of ASPS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ASPS's net profit margin of 14.69% compares favorably to the industry average.
  • The debt-to-equity ratio is very high at 6.70 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 2.65, which shows the ability to cover short-term cash needs.
  • Net operating cash flow has significantly decreased to $14.17 million or 78.90% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

You can view the full analysis from the report here: Altisource Portfolio Solutions Ratings Report

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At the close, Urstadt Biddle Properties ( UBP) was down $0.33 (1.7%) to $19.13 on heavy volume. Throughout the day, 2,127 shares of Urstadt Biddle Properties exchanged hands as compared to its average daily volume of 1,100 shares. The stock ranged in price between $19.12-$19.61 after having opened the day at $19.55 as compared to the previous trading day's close of $19.46.

Urstadt Biddle Properties Inc. is a real estate investment trust. The firm invests in the real estate markets of the United States. Urstadt Biddle Properties has a market cap of $181.9 million and is part of the services sector. Shares are up 4.2% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Urstadt Biddle Properties as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, revenue growth, reasonable valuation levels and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from TheStreet Ratings analysis on UBP go as follows:

  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 334.4% when compared to the same quarter one year prior, rising from $7.45 million to $32.34 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 13.4%. Since the same quarter one year prior, revenues slightly increased by 8.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 40.21% is the gross profit margin for URSTADT BIDDLE PROPERTIES which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 120.72% significantly outperformed against the industry average.

You can view the full analysis from the report here: Urstadt Biddle Properties 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 Housing & Land Development ( CHLN) was another company that pushed the Real Estate industry lower today. China Housing & Land Development was down $0.02 (3.0%) to $0.48 on light volume. Throughout the day, 19,490 shares of China Housing & Land Development exchanged hands as compared to its average daily volume of 35,800 shares. The stock ranged in price between $0.48-$0.54 after having opened the day at $0.50 as compared to the previous trading day's close of $0.50.

China Housing & Land Development, Inc., a real estate development company, is engaged in the acquisition, development, management, and sale of commercial and residential real estate properties primarily in Xi'an, the People's Republic of China. China Housing & Land Development has a market cap of $17.4 million and is part of the services sector. Shares are down 2.0% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates China Housing & Land Development as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, generally disappointing historical performance in the stock itself and poor profit margins.

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Highlights from TheStreet Ratings analysis on CHLN go as follows:

  • Although CHLN's debt-to-equity ratio of 2.58 is very high, it is currently less than that of the industry average.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Real Estate Management & Development industry and the overall market, CHINA HOUSING & LAND DEV INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • CHLN's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 76.64%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The gross profit margin for CHINA HOUSING & LAND DEV INC is rather low; currently it is at 23.40%. Regardless of CHLN's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 7.83% trails the industry average.
  • CHINA HOUSING & LAND DEV INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, CHINA HOUSING & LAND DEV INC reported lower earnings of $0.34 versus $0.56 in the prior year.

You can view the full analysis from the report here: China Housing & Land Development 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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