Regency Centers Corporation (NYSE: REG) and Macerich Company (The) (NYSE:MAC) are both mid-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.

Volatility and Risk

Regency Centers Corporation has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500. Comparatively, Macerich Company (The) has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.

Dividends

Regency Centers Corporation pays an annual dividend of $2.12 per share and has a dividend yield of 3.2%. Macerich Company (The) pays an annual dividend of $2.96 per share and has a dividend yield of 4.6%. Regency Centers Corporation pays out 235.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Macerich Company (The) pays out 281.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Regency Centers Corporation has raised its dividend for 3 consecutive years and Macerich Company (The) has raised its dividend for 6 consecutive years. Macerich Company (The) is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Regency Centers Corporation and Macerich Company (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Regency Centers Corporation 17.59% 2.82% 1.65%
Macerich Company (The) 14.92% 3.56% 1.55%

Insider and Institutional Ownership

91.6% of Regency Centers Corporation shares are held by institutional investors. Comparatively, 91.3% of Macerich Company (The) shares are held by institutional investors. 12.7% of Regency Centers Corporation shares are held by company insiders. Comparatively, 3.8% of Macerich Company (The) shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Regency Centers Corporation and Macerich Company (The)’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Regency Centers Corporation $614.37 million 18.40 $164.92 million $0.90 73.83
Macerich Company (The) $1.04 billion 8.70 $516.99 million $1.05 61.31

Macerich Company (The) has higher revenue and earnings than Regency Centers Corporation. Macerich Company (The) is trading at a lower price-to-earnings ratio than Regency Centers Corporation, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Regency Centers Corporation and Macerich Company (The), as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Regency Centers Corporation 0 6 3 1 2.50
Macerich Company (The) 1 8 5 0 2.29

Regency Centers Corporation currently has a consensus price target of $70.50, indicating a potential upside of 6.09%. Macerich Company (The) has a consensus price target of $66.71, indicating a potential upside of 3.64%. Given Regency Centers Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Regency Centers Corporation is more favorable than Macerich Company (The).

Summary

Regency Centers Corporation beats Macerich Company (The) on 10 of the 18 factors compared between the two stocks.

Regency Centers Corporation Company Profile

Regency Centers Corporation is a real estate investment trust (REIT). The Company is the general partner of Regency Centers, L.P. (the Operating Partnership). The Company is engaged in the ownership, management, leasing, acquisition and development of retail shopping centers through the Operating Partnership. The Company’s properties include Palm Valley Marketplace, Shops at Arizona, Amerige Heights Town Center, Clayton Valley Shopping Center, Five Points Shopping Center, French Valley Village Center, Hasley Canyon Village, Pleasant Hill Shopping Center, Snell & Branham Plaza, Applewood Shopping Center, Kent Place, Black Rock, Spring Valley Shopping Center and Pebblebrook Plaza. As of December 31, 2016, the Company owned all of the Preferred Units of the Operating Partnership and approximately 99.9% of the Units in the Operating Partnership. As of December 31, 2016, it owned direct or partial interests in 307 shopping centers.

Macerich Company (The) Company Profile

The Macerich Company is a self-administered and self-managed real estate investment trust (REIT). The Company is involved in the acquisition, ownership, development, redevelopment, management and leasing of regional and community/power shopping centers located throughout the United States. The Company owns ownership interests in, The Macerich Partnership, L.P. (the Operating Partnership). As of December 31, 2016, the Company, through its operating partnership, had ownership interests in 50 regional shopping centers and seven community/power shopping centers. These 57 regional and community/power shopping centers consisted of approximately 56 million square feet of gross leasable area (GLA), as of December 31, 2016. The Company’s properties include Danbury Fair Mall, Desert Sky Mall, Fresno Fashion Fair, NorthPark Mall, Oaks, The, Towne Mall, Valley Mall, Arrowhead Towne Center, Deptford Mall and South Plains Mall.

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