Retail Opportunity Investments (NASDAQ: ROIC) and Macerich (NYSE:MAC) are both financials companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.
This is a summary of recent ratings and recommmendations for Retail Opportunity Investments and Macerich, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Retail Opportunity Investments||0||4||4||0||2.50|
Volatility and Risk
Retail Opportunity Investments has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, Macerich has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.
Earnings & Valuation
This table compares Retail Opportunity Investments and Macerich’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Retail Opportunity Investments||$273.26 million||7.18||$38.47 million||$0.31||56.32|
|Macerich||$993.66 million||8.38||$146.13 million||$1.12||52.79|
Macerich has higher revenue and earnings than Retail Opportunity Investments. Macerich is trading at a lower price-to-earnings ratio than Retail Opportunity Investments, indicating that it is currently the more affordable of the two stocks.
This table compares Retail Opportunity Investments and Macerich’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Retail Opportunity Investments||14.08%||2.95%||1.34%|
Insider & Institutional Ownership
98.2% of Retail Opportunity Investments shares are owned by institutional investors. Comparatively, 97.3% of Macerich shares are owned by institutional investors. 2.2% of Retail Opportunity Investments shares are owned by insiders. Comparatively, 3.8% of Macerich shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Retail Opportunity Investments pays an annual dividend of $0.75 per share and has a dividend yield of 4.3%. Macerich pays an annual dividend of $2.96 per share and has a dividend yield of 5.0%. Retail Opportunity Investments pays out 241.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Macerich pays out 264.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Retail Opportunity Investments has increased its dividend for 7 consecutive years.
Macerich beats Retail Opportunity Investments on 11 of the 17 factors compared between the two stocks.
About Retail Opportunity Investments
Retail Opportunity Investments Corp. (ROIC) is a fully integrated, self-managed real estate investment trust (REIT). The Company specializes in the acquisition, ownership and management of necessity-based community and neighborhood shopping centers on the west coast of the United States, anchored by supermarkets and drugstores. Retail Opportunity Investments Partnership, LP is the operating partnership of the Company. The Operating Partnership holds substantially all the assets of the Company and directly or indirectly holds the ownership interests in the Company’s real estate ventures. The Operating Partnership conducts the operations of the Company’s business. As of September 30, 2017, the Company’s portfolio consisted of 87 properties totaling approximately 10.0 million square feet of gross leasable area (GLA). As of September 30, 2017, the Company’s portfolio was approximately 97.3% leased.
The Macerich Company is a self-administered and self-managed real estate investment trust (REIT). The Company is involved in the acquisition, ownership, development, redevelopment, management and leasing of regional and community/power shopping centers located throughout the United States. The Company owns ownership interests in, The Macerich Partnership, L.P. (the Operating Partnership). As of December 31, 2016, the Company, through its operating partnership, had ownership interests in 50 regional shopping centers and seven community/power shopping centers. These 57 regional and community/power shopping centers consisted of approximately 56 million square feet of gross leasable area (GLA), as of December 31, 2016. The Company’s properties include Danbury Fair Mall, Desert Sky Mall, Fresno Fashion Fair, NorthPark Mall, Oaks, The, Towne Mall, Valley Mall, Arrowhead Towne Center, Deptford Mall and South Plains Mall.
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