Financial Survey: FrontView REIT (NYSE:FVR) vs. Regency Centers (NASDAQ:REG)

Regency Centers (NASDAQ:REG) and FrontView REIT (NYSE:FVR) are both real estate companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Regency Centers and FrontView REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Regency Centers	0	11	6	2	2.53
FrontView REIT	1	3	7	2	2.77

Regency Centers currently has a consensus price target of $83.82, suggesting a potential upside of 10.16%. FrontView REIT has a consensus price target of $21.83, suggesting a potential upside of 11.44%. Given FrontView REIT’s stronger consensus rating and higher probable upside, analysts plainly believe FrontView REIT is more favorable than Regency Centers.

Profitability

This table compares Regency Centers and FrontView REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Regency Centers	34.38%	8.04%	4.26%
FrontView REIT	2.10%	0.29%	0.17%

Insider and Institutional Ownership

96.1% of Regency Centers shares are owned by institutional investors. 1.0% of Regency Centers shares are owned by insiders. Comparatively, 9.6% of FrontView REIT shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Regency Centers and FrontView REIT”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Regency Centers	$1.55 billion	8.97	$527.46 million	$2.95	25.79
FrontView REIT	$67.11 million	6.61	-$3.83 million	$0.03	653.07

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

Volatility & Risk

Regency Centers has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, FrontView REIT has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

Dividends

Regency Centers pays an annual dividend of $3.02 per share and has a dividend yield of 4.0%. FrontView REIT pays an annual dividend of $0.86 per share and has a dividend yield of 4.4%. Regency Centers pays out 102.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. FrontView REIT pays out 2,866.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Regency Centers has raised its dividend for 5 consecutive years.

Summary

Regency Centers beats FrontView REIT on 10 of the 17 factors compared between the two stocks.

About Regency Centers

Regency Centers is a preeminent national owner, operator, and developer of shopping centers located in suburban trade areas with compelling demographics. Our portfolio includes thriving properties merchandised with highly productive grocers, restaurants, service providers, and best-in-class retailers that connect to their neighborhoods, communities, and customers. Operating as a fully integrated real estate company, Regency Centers is a qualified real estate investment trust (REIT) that is self-administered, self-managed, and an S&P 500 Index member.

About FrontView REIT

FrontView REIT specializes in real estate investing.