Equity One (NYSE: EQY) and Whitestone REIT (NYSE:WSR) are both financials companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Profitability

This table compares Equity One and Whitestone REIT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Equity One 18.64% 3.82% 2.05%
Whitestone REIT 5.77% 2.22% 0.72%

Institutional & Insider Ownership

64.0% of Equity One shares are held by institutional investors. Comparatively, 49.5% of Whitestone REIT shares are held by institutional investors. 35.9% of Equity One shares are held by company insiders. Comparatively, 5.3% of Whitestone REIT shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Equity One and Whitestone REIT’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Equity One N/A N/A N/A $0.49 62.96
Whitestone REIT $104.44 million 4.50 $7.93 million $0.17 71.82

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Equity One and Whitestone REIT, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Equity One 0 0 0 0 N/A
Whitestone REIT 1 2 3 0 2.33

Whitestone REIT has a consensus target price of $14.40, indicating a potential upside of 17.94%. Given Whitestone REIT’s higher possible upside, analysts plainly believe Whitestone REIT is more favorable than Equity One.

Dividends

Equity One pays an annual dividend of $0.72 per share and has a dividend yield of 2.3%. Whitestone REIT pays an annual dividend of $1.14 per share and has a dividend yield of 9.3%. Equity One pays out 146.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.

Volatility & Risk

Equity One has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, Whitestone REIT has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.

Summary

Equity One beats Whitestone REIT on 7 of the 13 factors compared between the two stocks.

About Equity One

Equity One, Inc. is a real estate investment trust (REIT). The Company owns, manages, acquires, develops and redevelops shopping centers and retail properties located in supply constrained suburban and urban communities. As of December 31, 2016, the Company’s portfolio consisted of 122 properties, including 101 retail properties and five non-retail properties totaling approximately 12.8 million square feet of gross leasable area (GLA), 10 development or redevelopment properties with approximately 2.3 million square feet of GLA, and six land parcels. Its retail occupancy excluding developments and redevelopments was 95.8% and included national, regional and local tenants as of December 31, 2016. In addition, the Company had joint venture interests in six retail properties and two office buildings totaling approximately 1.4 million square feet of GLA as of December 31, 2016.

About Whitestone REIT

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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