Kimco Realty (NYSE: KIM) and Acadia Realty Trust (NYSE:AKR) are both mid-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Dividends

Kimco Realty pays an annual dividend of $1.08 per share and has a dividend yield of 5.9%. Acadia Realty Trust pays an annual dividend of $1.04 per share and has a dividend yield of 3.8%. Kimco Realty pays out 125.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Acadia Realty Trust pays out 146.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kimco Realty has raised its dividend for 4 consecutive years and Acadia Realty Trust has raised its dividend for 7 consecutive years. Kimco Realty is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Kimco Realty and Acadia Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kimco Realty 35.51% 7.73% 3.65%
Acadia Realty Trust 25.34% 2.77% 1.50%

Volatility & Risk

Kimco Realty has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, Acadia Realty Trust has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500.

Institutional & Insider Ownership

91.5% of Kimco Realty shares are held by institutional investors. 2.9% of Kimco Realty shares are held by insiders. Comparatively, 1.7% of Acadia Realty Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Kimco Realty and Acadia Realty Trust’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kimco Realty $1.17 billion 6.63 $378.85 million $0.86 21.22
Acadia Realty Trust $189.94 million 12.14 $72.77 million $0.71 38.79

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

Analyst Recommendations

This is a summary of recent ratings for Kimco Realty and Acadia Realty Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kimco Realty 0 9 5 0 2.36
Acadia Realty Trust 0 2 2 0 2.50

Kimco Realty presently has a consensus target price of $22.75, suggesting a potential upside of 24.63%. Acadia Realty Trust has a consensus target price of $33.50, suggesting a potential upside of 21.64%. Given Kimco Realty’s higher possible upside, analysts clearly believe Kimco Realty is more favorable than Acadia Realty Trust.

Summary

Kimco Realty beats Acadia Realty Trust on 13 of the 17 factors compared between the two stocks.

About Kimco Realty

Kimco Realty Corporation is a self-administered real estate investment trust. The Company is engaged in the ownership, management, development and operation of open-air shopping centers, which are anchored generally by discount department stores, grocery stores or drugstores. As of June 30, 2017, the Company had interests in 510 shopping center properties, including 84 million square feet of gross leasable area (GLA), located in 32 states, Puerto Rico and Canada. As of March 31, 2017, the Company had 380 other property interests, primarily through the Company’s preferred equity investments and other real estate investments, totaling 5.8 million square feet of GLA.

About Acadia Realty Trust

Acadia Realty Trust is a real estate investment trust. The Company is focused on the ownership, acquisition, development and management of retail properties located in the United States. It operates through three segments: Core Portfolio, Funds and Structured Financing. Core Portfolio and Fund properties primarily consist of street and urban retail, and dense suburban shopping centers. Funds holds primarily retail real estate in which it co-invests with institutional investors. Structured Financing consists of earnings and expenses related to notes and mortgages receivable, which are held within the Core Portfolio or the Funds. As of December 31, 2016, it had ownership interests in 182 properties within its core portfolio. In the Core Portfolio segment, the Company owned an interest in a 311,000 square foot shopping center, a 28,000 square foot retail and an interest in an 87,000 square foot retail property, among others, as of December 31, 2016.

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