Winthrop Realty Trust (NYSE: FUR) and Whitestone REIT (NYSE:WSR) are both small-cap commercial reits – nec companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, valuation, risk, institutional ownership and earnings.

Analyst Recommendations

This is a summary of current recommendations and price targets for Winthrop Realty Trust and Whitestone REIT, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Winthrop Realty Trust 0 0 0 0 N/A
Whitestone REIT 1 1 3 0 2.40

Whitestone REIT has a consensus price target of $14.75, indicating a potential upside of 0.82%. Given Whitestone REIT’s higher probable upside, analysts plainly believe Whitestone REIT is more favorable than Winthrop Realty Trust.

Institutional & Insider Ownership

49.8% of Whitestone REIT shares are held by institutional investors. 5.3% of Whitestone REIT shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Winthrop Realty Trust has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Whitestone REIT has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Dividends

Whitestone REIT pays an annual dividend of $1.14 per share and has a dividend yield of 7.8%. Winthrop Realty Trust does not pay a dividend. Whitestone REIT pays out 670.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Winthrop Realty Trust and Whitestone REIT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Winthrop Realty Trust N/A N/A N/A
Whitestone REIT 5.77% 2.22% 0.72%

Valuation and Earnings

This table compares Winthrop Realty Trust and Whitestone REIT’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Winthrop Realty Trust N/A N/A N/A $0.15 62.20
Whitestone REIT $104.44 million 5.39 $7.93 million $0.17 86.06

Whitestone REIT has higher revenue and earnings than Winthrop Realty Trust. Winthrop Realty Trust is trading at a lower price-to-earnings ratio than Whitestone REIT, indicating that it is currently the more affordable of the two stocks.

Summary

Whitestone REIT beats Winthrop Realty Trust on 12 of the 13 factors compared between the two stocks.

Winthrop Realty Trust Company Profile

Winthrop Realty Trust (Winthrop) is a real estate investment trust (REIT). The Company conducts its business through its operating partnership, WRT Realty L.P. (Operating Partnership). The Company’s business is owning real property and real estate related assets. The Company has adopted a plan of liquidation. The Company is not permitted to make any new investments other than protective acquisitions or advances with respect to its existing assets, including providing seller financing to purchasers of its assets if it deems it prudent to facilitate the sale of such asset. It is permitted to satisfy any existing contractual obligations, including any capital call requirements and acquisitions or dispositions pursuant to buy-sell provisions under existing joint venture documentation. The Company holds approximately 10 consolidated operating properties, over 10 equity investments, approximately four loans receivable, one secured financing receivable and one loan security.

Whitestone REIT Company Profile

Whitestone REIT is a real estate investment trust. The Company is engaged in owning and operating commercial properties in culturally diverse markets in various metropolitan areas. The Company’s acquisition targets are located in densely populated, culturally diverse neighborhoods, primarily in and around Austin, Chicago, Dallas-Fort Worth, Houston, Phoenix and San Antonio. As of December 31, 2016, the Company owned or held interests in 69 commercial properties, including 15 properties in Houston, five properties in Dallas-Fort Worth, three properties in San Antonio, four properties in Austin, 27 properties in the Scottsdale and Phoenix, Arizona metropolitan areas, and one property in Buffalo Grove, Illinois, a suburb of Chicago. As of December 31, 2016, the Company’s properties included Heritage Trace Plaza, Headquarters Village, La Mirada, The Marketplace at Central, Mercado at Scottsdale Ranch, Paradise Plaza, Parkside Village North, Pima Norte and Quinlan Crossing.

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