Wheeler Real Estate Investment Trust (NASDAQ: WHLR) and Kite Realty Group Trust (NYSE:KRG) are both small-cap retail reits companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.

Risk & Volatility

Wheeler Real Estate Investment Trust has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, Kite Realty Group Trust has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.

Earnings and Valuation

This table compares Wheeler Real Estate Investment Trust and Kite Realty Group Trust’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wheeler Real Estate Investment Trust $44.16 million 1.42 -$11.20 million ($2.23) -3.21
Kite Realty Group Trust $354.12 million 4.23 $1.18 million $0.15 119.33

Kite Realty Group Trust has higher revenue and earnings than Wheeler Real Estate Investment Trust. Wheeler Real Estate Investment Trust is trading at a lower price-to-earnings ratio than Kite Realty Group Trust, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings for Wheeler Real Estate Investment Trust and Kite Realty Group Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wheeler Real Estate Investment Trust 0 2 4 0 2.67
Kite Realty Group Trust 0 3 3 0 2.50

Wheeler Real Estate Investment Trust presently has a consensus price target of $14.25, indicating a potential upside of 99.02%. Kite Realty Group Trust has a consensus price target of $24.25, indicating a potential upside of 35.47%. Given Wheeler Real Estate Investment Trust’s stronger consensus rating and higher probable upside, research analysts clearly believe Wheeler Real Estate Investment Trust is more favorable than Kite Realty Group Trust.

Dividends

Wheeler Real Estate Investment Trust pays an annual dividend of $1.36 per share and has a dividend yield of 19.0%. Kite Realty Group Trust pays an annual dividend of $1.27 per share and has a dividend yield of 7.1%. Wheeler Real Estate Investment Trust pays out -61.0% of its earnings in the form of a dividend. Kite Realty Group Trust pays out 846.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kite Realty Group Trust has raised its dividend for 4 consecutive years. Wheeler Real Estate Investment Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

28.1% of Wheeler Real Estate Investment Trust shares are owned by institutional investors. Comparatively, 94.3% of Kite Realty Group Trust shares are owned by institutional investors. 5.3% of Wheeler Real Estate Investment Trust shares are owned by insiders. Comparatively, 1.9% of Kite Realty Group Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Wheeler Real Estate Investment Trust and Kite Realty Group Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wheeler Real Estate Investment Trust -13.61% -16.99% -1.92%
Kite Realty Group Trust 3.60% 0.80% 0.36%

Summary

Kite Realty Group Trust beats Wheeler Real Estate Investment Trust on 10 of the 17 factors compared between the two stocks.

About Wheeler Real Estate Investment Trust

Wheeler Real Estate Investment Trust, Inc. is a self-managed commercial real estate investment company. The Company focuses on acquiring and managing retail properties with a primary focus on grocery-anchored centers. As of December 31, 2016, the Company owned a portfolio consisting of 74 properties, including 59 retail shopping centers and five freestanding retail properties totaling 4,906,511 gross leasable square feet of which approximately 94% were leased, one office property, eight undeveloped land parcels totaling approximately 70 acres and one redevelopment project. Its properties are located in Virginia, North Carolina, South Carolina, Florida, Georgia, Kentucky, Oklahoma, Tennessee, Alabama, New Jersey, Pennsylvania and West Virginia. Its properties include Alex City Marketplace, Berkley Shopping Center, Clover Plaza, Darien Shopping Center, Cypress Shopping Center, Harrodsburg Marketplace, LaGrange Marketplace, Riverbridge Shopping Center and Village of Martinsville.

About Kite Realty Group Trust

Kite Realty Group Trust is a real estate investment trust. The Company, through its subsidiary, Kite Realty Group, L.P., owns interests in various operating subsidiaries and joint ventures engaged in the ownership, operation, acquisition, development and redevelopment of neighborhood and community shopping centers in selected markets in the United States. As of December 31, 2016, the Company owned interests in 108 operating retail properties totaling approximately 21.4 million square feet of gross leasable area (including approximately 6.3 million square feet of non-owned anchor space) located in 20 states. As of December 31, 2016, the Company had an interest in two development projects under construction. In addition to its development projects, as of December 31, 2016, the Company had nine redevelopment projects. As of December 31, 2016, the Company owned interests in one office operating property and an associated parking garage.

Receive News & Ratings for Wheeler Real Estate Investment Trust Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Wheeler Real Estate Investment Trust and related companies with MarketBeat.com's FREE daily email newsletter.