Weingarten Realty Investors (NYSE: WRI) and Washington Prime Group (NYSE:WPG) are both financials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.
Weingarten Realty Investors pays an annual dividend of $1.54 per share and has a dividend yield of 5.5%. Washington Prime Group pays an annual dividend of $1.00 per share and has a dividend yield of 14.6%. Weingarten Realty Investors pays out 59.0% of its earnings in the form of a dividend. Washington Prime Group pays out 116.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Washington Prime Group has increased its dividend for 8 consecutive years. Washington Prime Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
80.7% of Weingarten Realty Investors shares are held by institutional investors. Comparatively, 88.2% of Washington Prime Group shares are held by institutional investors. 7.3% of Weingarten Realty Investors shares are held by insiders. Comparatively, 0.3% of Washington Prime Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This is a summary of current ratings for Weingarten Realty Investors and Washington Prime Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Weingarten Realty Investors||0||4||2||0||2.33|
|Washington Prime Group||1||1||0||0||1.50|
Weingarten Realty Investors presently has a consensus target price of $33.50, suggesting a potential upside of 20.07%. Washington Prime Group has a consensus target price of $8.00, suggesting a potential upside of 16.45%. Given Weingarten Realty Investors’ stronger consensus rating and higher possible upside, research analysts plainly believe Weingarten Realty Investors is more favorable than Washington Prime Group.
Risk & Volatility
Weingarten Realty Investors has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, Washington Prime Group has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.
Valuation and Earnings
This table compares Weingarten Realty Investors and Washington Prime Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Weingarten Realty Investors||$573.16 million||6.25||$335.27 million||$2.61||10.69|
|Washington Prime Group||$758.12 million||1.68||$197.06 million||$0.86||7.99|
Weingarten Realty Investors has higher earnings, but lower revenue than Washington Prime Group. Washington Prime Group is trading at a lower price-to-earnings ratio than Weingarten Realty Investors, indicating that it is currently the more affordable of the two stocks.
This table compares Weingarten Realty Investors and Washington Prime Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Weingarten Realty Investors||58.81%||18.88%||7.79%|
|Washington Prime Group||25.53%||18.15%||4.15%|
Weingarten Realty Investors beats Washington Prime Group on 12 of the 17 factors compared between the two stocks.
Weingarten Realty Investors Company Profile
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.
Washington Prime Group Company Profile
Washington Prime Group Inc. (WPG Inc.), formerly WP Glimcher Inc., operates as a self-administered and self-managed real estate investment trust (REIT). The Company’s primary business is the ownership, development and management of retail real estate within the United States. The Company owns, develops and manages enclosed retail properties and community centers. As of December 31, 2016, its assets consisted of material interests in 114 shopping centers in the United States, consisting of approximately 63 million square feet of gross leasable area. The Company also owns parcels of land, which can be used for either the development of new shopping centers or the expansion of existing properties. Washington Prime Group, L.P. is the Company’s majority-owned partnership subsidiary that owns, develops and manages, through its affiliates, all of WPG Inc.’s real estate properties and other assets. Its properties include Irving Mall, Lindale Mall, Markland Plaza and Royal Eagle Plaza.
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