Financial Review: W.P. Carey (NYSE:WPC) vs. Mirvac Group (OTCMKTS:MRVGF)

Mirvac Group (OTCMKTS:MRVGF) and W.P. Carey (NYSE:WPC) are both real estate companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.

Insider and Institutional Ownership

48.6% of Mirvac Group shares are owned by institutional investors. Comparatively, 73.7% of W.P. Carey shares are owned by institutional investors. 1.0% of W.P. Carey shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Mirvac Group pays an annual dividend of $0.09 per share and has a dividend yield of 8.1%. W.P. Carey pays an annual dividend of $3.76 per share and has a dividend yield of 5.3%. Mirvac Group pays out 74.0% of its earnings in the form of a dividend. W.P. Carey pays out 128.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. W.P. Carey has increased its dividend for 2 consecutive years. Mirvac Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current ratings and target prices for Mirvac Group and W.P. Carey, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mirvac Group	0	0	0	0	0.00
W.P. Carey	1	6	7	0	2.43

W.P. Carey has a consensus price target of $79.31, suggesting a potential upside of 12.24%. Given W.P. Carey’s stronger consensus rating and higher probable upside, analysts clearly believe W.P. Carey is more favorable than Mirvac Group.

Profitability

This table compares Mirvac Group and W.P. Carey’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mirvac Group	N/A	N/A	N/A
W.P. Carey	36.34%	7.81%	3.58%

Valuation and Earnings

This table compares Mirvac Group and W.P. Carey”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mirvac Group	N/A	N/A	N/A	$0.12	9.10
W.P. Carey	$1.72 billion	9.38	$466.36 million	$2.93	24.12

W.P. Carey has higher revenue and earnings than Mirvac Group. Mirvac Group is trading at a lower price-to-earnings ratio than W.P. Carey, indicating that it is currently the more affordable of the two stocks.

Summary

W.P. Carey beats Mirvac Group on 12 of the 14 factors compared between the two stocks.

About Mirvac Group

Founded in 1972, Mirvac is an Australian Securities Exchange (ASX) top 50 company with an integrated asset creation and curation capability. For more than 50 years, we've dedicated ourselves to creating extraordinary urban places and experiences. We have over $35 billion of assets under management, together with a $12 billion commercial and mixed use development pipeline, and a $17 billion residential development pipeline, enabling us to deliver innovative and high-quality property for our customers, while driving long-term value for our securityholders.

About W.P. Carey

W. P. Carey ranks among the largest net lease REITs with a well-diversified portfolio of high-quality, operationally critical commercial real estate, which includes 1,424 net lease properties covering approximately 173 million square feet and a portfolio of 89 self-storage operating properties as of December 31, 2023. With offices in New York, London, Amsterdam and Dallas, the company remains focused on investing primarily in single-tenant, industrial, warehouse and retail properties located in the U.S. and Northern and Western Europe, under long-term net leases with built-in rent escalations.