The Real Estate industry as a whole closed the day up 0.4% versus the S&P 500, which was down 1.0%. Laggards within the Real Estate industry included Institutional Financial Markets ( IFMI), down 2.6%, China HGS Real Estate ( HGSH), down 4.5%, Marlin Business Services ( MRLN), down 3.1%, Sotherly Hotels ( SOHO), down 1.8% and JG Wentworth Company ( JGW), down 8.1%.

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

Sotherly Hotels ( SOHO) is one of the companies that pushed the Real Estate industry lower today. Sotherly Hotels was down $0.13 (1.8%) to $7.05 on heavy volume. Throughout the day, 183,479 shares of Sotherly Hotels exchanged hands as compared to its average daily volume of 62,800 shares. The stock ranged in price between $5.83-$7.30 after having opened the day at $7.00 as compared to the previous trading day's close of $7.18.

SoTHERLY Hotels Inc. is a self-managed and self-administered lodging REIT focused on the acquisition, renovation, upbranding and repositioning of upscale to upper upscale full-service hotels in the Mid-Atlantic and Southern United States. Sotherly Hotels has a market cap of $76.5 million and is part of the financial sector. Shares are down 4.3% year-to-date as of the close of trading on Monday. Currently there are 2 analysts who rate Sotherly Hotels a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Sotherly Hotels as a hold. Among the primary strengths of the company is its robust revenue growth -- not just in the most recent periods but in previous quarters as well. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on SOHO go as follows:

  • The revenue growth came in higher than the industry average of 7.1%. Since the same quarter one year prior, revenues rose by 23.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The share price of SOTHERLY HOTELS INC has not done very well: it is down 9.07% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Real Estate Investment Trusts (REITs) industry average. The net income has significantly decreased by 26.6% when compared to the same quarter one year ago, falling from $0.78 million to $0.58 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, SOTHERLY HOTELS INC's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here: Sotherly Hotels Ratings Report

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At the close, Marlin Business Services ( MRLN) was down $0.45 (3.1%) to $14.07 on light volume. Throughout the day, 22,660 shares of Marlin Business Services exchanged hands as compared to its average daily volume of 30,400 shares. The stock ranged in price between $13.91-$14.45 after having opened the day at $14.45 as compared to the previous trading day's close of $14.52.

Marlin Business Services Corp., through its subsidiary, Marlin Leasing Corporation, provides commercial lending products and services to small and mid-sized businesses in the United States. Marlin Business Services has a market cap of $189.0 million and is part of the financial sector. Shares are down 29.3% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Marlin Business Services a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Marlin Business Services as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on MRLN go as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 7.0%. Since the same quarter one year prior, revenues slightly increased by 0.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for MARLIN BUSINESS SERVICES INC is rather high; currently it is at 66.94%. Regardless of MRLN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MRLN's net profit margin of 18.88% compares favorably to the industry average.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, MRLN has underperformed the S&P 500 Index, declining 18.40% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Diversified Financial Services industry average. The net income has decreased by 15.9% when compared to the same quarter one year ago, dropping from $4.94 million to $4.15 million.

You can view the full analysis from the report here: Marlin Business Services Ratings Report

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China HGS Real Estate ( HGSH) was another company that pushed the Real Estate industry lower today. China HGS Real Estate was down $0.09 (4.5%) to $1.97 on light volume. Throughout the day, 1,400 shares of China HGS Real Estate exchanged hands as compared to its average daily volume of 31,600 shares. The stock ranged in price between $1.95-$1.97 after having opened the day at $1.96 as compared to the previous trading day's close of $2.06.

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. The company engages in the construction and sale of residential apartments, parking lots, and commercial properties. China HGS Real Estate has a market cap of $88.3 million and is part of the financial sector. Shares are down 52.0% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates China HGS Real Estate as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and a generally disappointing performance in the stock itself.

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Highlights from TheStreet Ratings analysis on HGSH go as follows:

  • 48.58% is the gross profit margin for CHINA HGS REAL ESTATE INC which we consider to be strong. It has increased significantly from the same period last year. Along with this, the net profit margin of 42.15% significantly outperformed against the industry average.
  • HGSH's debt-to-equity ratio is very low at 0.25 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 0.10 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The share price of CHINA HGS REAL ESTATE INC has not done very well: it is down 13.25% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Real Estate Management & Development industry average. The net income has significantly decreased by 31.1% when compared to the same quarter one year ago, falling from $13.45 million to $9.27 million.

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

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