Comparing Weingarten Realty Investors (WRI) & Retail Properties of America (RPAI)
Weingarten Realty Investors (NYSE: WRI) and Retail Properties of America (NYSE:RPAI) are both mid-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.
Earnings & Valuation
This table compares Weingarten Realty Investors and Retail Properties of America’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Weingarten Realty Investors||$549.55 million||6.34||$238.93 million||$1.63||16.66|
|Retail Properties of America||$538.14 million||5.04||$251.49 million||$1.04||11.48|
This is a breakdown of recent ratings and price targets for Weingarten Realty Investors and Retail Properties of America, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Weingarten Realty Investors||0||3||2||0||2.40|
|Retail Properties of America||0||1||5||0||2.83|
Weingarten Realty Investors currently has a consensus price target of $33.50, indicating a potential upside of 23.39%. Retail Properties of America has a consensus price target of $16.08, indicating a potential upside of 34.70%. Given Retail Properties of America’s stronger consensus rating and higher possible upside, analysts clearly believe Retail Properties of America is more favorable than Weingarten Realty Investors.
Institutional & Insider Ownership
80.7% of Weingarten Realty Investors shares are held by institutional investors. Comparatively, 76.7% of Retail Properties of America shares are held by institutional investors. 7.3% of Weingarten Realty Investors shares are held by company insiders. Comparatively, 0.4% of Retail Properties of America shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Weingarten Realty Investors and Retail Properties of America’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Weingarten Realty Investors||36.86%||12.07%||4.85%|
|Retail Properties of America||46.73%||12.36%||6.02%|
Weingarten Realty Investors pays an annual dividend of $1.54 per share and has a dividend yield of 5.7%. Retail Properties of America pays an annual dividend of $0.66 per share and has a dividend yield of 5.5%. Weingarten Realty Investors pays out 94.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Retail Properties of America pays out 63.5% of its earnings in the form of a dividend. Weingarten Realty Investors has increased its dividend for 8 consecutive years. Weingarten Realty Investors is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
Weingarten Realty Investors has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, Retail Properties of America has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500.
Weingarten Realty Investors beats Retail Properties of America on 9 of the 17 factors compared between the two stocks.
About Weingarten Realty Investors
Weingarten Realty Investors is a real estate investment trust (REIT). The Company’s primary business is leasing space to tenants in the shopping centers it owns or leases. The Company also provides property management services. The Company is in the business of owning, managing and developing retail shopping centers. As of December 31, 2016, the Company had owned or operated under long-term leases, either directly or through its interest in real estate joint ventures or partnerships, a total of 220 centers, primarily neighborhood and community shopping centers, which were located in 18 states spanning the country from coast to coast with approximately 44.7 million square feet of gross leasable area. Its centers are located principally in the South, West Coast and Southeast Coast of the United States with concentrations in Arizona, California, Florida and Texas. It also owned interests in 28 parcels of land that totaled approximately 19.8 million square feet, as of December 31, 2016.
About Retail Properties of America
Retail Properties of America, Inc. is a real estate investment trust (REIT). The Company owns and operates shopping centers located in the United States. As of December 31, 2016, it owned 156 retail operating properties representing 25,832,000 square feet of gross leasable area (GLA). Its retail operating portfolio includes neighborhood and community centers, power centers, and lifestyle centers and multi-tenant retail-focused mixed-use properties, as well as single-user retail properties. As of December 31, 2016, it had identified 10 target markets, including Dallas, Washington, District of Columbia/Baltimore, New York, Atlanta, Seattle, Chicago, Houston, San Antonio, Phoenix and Austin. Its properties include 23rd Street Plaza, Azalea Square I, Boulevard Plaza, Brown’s Lane, Cranberry Square, Denton Crossing, Dorman Center I & II, Edgemont Town Center, Edwards Multiplex, Green’s Corner, Home Depot Plaza, Lake Mary Pointe, Lincoln Park, University Town Center and Winchester Commons.
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