Financial Survey: Retail Opportunity Investments (NASDAQ:ROIC) and United Development Funding IV (OTCMKTS:UDFI)

United Development Funding IV (OTCMKTS:UDFIGet Free Report) and Retail Opportunity Investments (NASDAQ:ROICGet Free Report) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.

Insider & Institutional Ownership

97.2% of Retail Opportunity Investments shares are owned by institutional investors. 0.5% of United Development Funding IV shares are owned by company insiders. Comparatively, 3.3% of Retail Opportunity Investments shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares United Development Funding IV and Retail Opportunity Investments’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
United Development Funding IV N/A N/A N/A N/A N/A
Retail Opportunity Investments $327.73 million 4.75 $34.53 million $0.30 40.73

Retail Opportunity Investments has higher revenue and earnings than United Development Funding IV.

Analyst Ratings

This is a summary of recent recommendations for United Development Funding IV and Retail Opportunity Investments, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Development Funding IV 0 0 0 0 N/A
Retail Opportunity Investments 1 1 2 0 2.25

Retail Opportunity Investments has a consensus target price of $14.38, suggesting a potential upside of 17.16%. Given Retail Opportunity Investments’ higher probable upside, analysts clearly believe Retail Opportunity Investments is more favorable than United Development Funding IV.

Profitability

This table compares United Development Funding IV and Retail Opportunity Investments’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
United Development Funding IV N/A N/A N/A
Retail Opportunity Investments 11.21% 2.75% 1.24%

Summary

Retail Opportunity Investments beats United Development Funding IV on 8 of the 8 factors compared between the two stocks.

About United Development Funding IV

(Get Free Report)

United Development Funding IV invests in secured loans for the acquisition and development of land into single-family home lots, and the construction of model and new single-family homes. It also makes equity investments in residential real estate. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. United Development Funding IV was founded in 2008 and is headquartered in Grapevine, Texas.

About Retail Opportunity Investments

(Get Free Report)

Retail Opportunity Investments Corp. (Nasdaq: ROIC), is a fully integrated, self-managed real estate investment trust (REIT) that specializes in the acquisition, ownership and management of grocery-anchored shopping centers located in densely populated, metropolitan markets across the West Coast. As of December 31, 2023, ROIC owned 94 shopping centers encompassing approximately 10.6 million square feet. ROIC is the largest publicly-traded, grocery-anchored shopping center REIT focused exclusively on the West Coast. ROIC is a member of the S&P SmallCap 600 Index and has investment-grade corporate debt ratings from Moody's Investor Services, S&P Global Ratings and Fitch Ratings, Inc.

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