Critical Analysis: Phillips Edison & Company, Inc. (NASDAQ:PECO) & Frasers Centrepoint Trust (OTCMKTS:FRZCF)

Phillips Edison & Company, Inc. (NASDAQ:PECO) and Frasers Centrepoint Trust (OTCMKTS:FRZCF) are both real estate companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Profitability

This table compares Phillips Edison & Company, Inc. and Frasers Centrepoint Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Phillips Edison & Company, Inc.	19.14%	5.52%	2.69%
Frasers Centrepoint Trust	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent recommendations for Phillips Edison & Company, Inc. and Frasers Centrepoint Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phillips Edison & Company, Inc.	0	6	3	0	2.33
Frasers Centrepoint Trust	0	0	0	0	0.00

Phillips Edison & Company, Inc. currently has a consensus price target of $44.78, indicating a potential upside of 14.61%. Given Phillips Edison & Company, Inc.’s stronger consensus rating and higher probable upside, equities analysts clearly believe Phillips Edison & Company, Inc. is more favorable than Frasers Centrepoint Trust.

Institutional & Insider Ownership

80.7% of Phillips Edison & Company, Inc. shares are held by institutional investors. Comparatively, 18.1% of Frasers Centrepoint Trust shares are held by institutional investors. 8.1% of Phillips Edison & Company, Inc. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Phillips Edison & Company, Inc. and Frasers Centrepoint Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phillips Edison & Company, Inc.	$726.59 million	6.92	$111.30 million	$1.15	33.97
Frasers Centrepoint Trust	N/A	N/A	N/A	$0.19	8.95

Phillips Edison & Company, Inc. has higher revenue and earnings than Frasers Centrepoint Trust. Frasers Centrepoint Trust is trading at a lower price-to-earnings ratio than Phillips Edison & Company, Inc., indicating that it is currently the more affordable of the two stocks.

Dividends

Phillips Edison & Company, Inc. pays an annual dividend of $1.30 per share and has a dividend yield of 3.3%. Frasers Centrepoint Trust pays an annual dividend of $0.11 per share and has a dividend yield of 6.5%. Phillips Edison & Company, Inc. pays out 113.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Frasers Centrepoint Trust pays out 57.9% of its earnings in the form of a dividend. Phillips Edison & Company, Inc. has raised its dividend for 1 consecutive years. Frasers Centrepoint Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Phillips Edison & Company, Inc. beats Frasers Centrepoint Trust on 12 of the 14 factors compared between the two stocks.

About Phillips Edison & Company, Inc.

Phillips Edison & Co., Inc. is a real estate investment trust, which engages in the ownership and operation of shopping centers. It also offers an investment management business providing property management and advisory services. Its portfolio consists of well-occupied, grocery-anchored neighborhood and community shopping centers having a mix of national, regional, and local retailers offering necessity-based goods and services. The company was founded by Jeffrey S. Edison and Michael C. Phillips in 1991 and is headquartered in Cincinnati, OH.

About Frasers Centrepoint Trust

Frasers Centrepoint Trust ("FCT") is a leading developer-sponsored retail real estate investment trust ("REIT") and one of the largest suburban retail mall owners in Singapore with assets under management of approximately S$6.9 billion. FCT's property portfolio comprises ten retail malls and an office building located in the suburban regions of Singapore, near homes and within minutes to transportation amenities. The retail portfolio has approximately 2.9 million square feet of net lettable area with over 1,800 leases with a strong focus on providing for necessity spending, food & beverage and essential services. The portfolio comprises Causeway Point, Century Square, Changi City Point, Hougang Mall, NEX (effective 25.50% interest), Northpoint City North Wing (including Yishun 10 Retail Podium), Tampines 1, Tiong Bahru Plaza, Waterway Point (50.00% interest), White Sands and an office property (Central Plaza). FCT's malls enjoy stable and recurring shopper footfall supported by commuter traffic and residential population in the catchment areas. FCT also holds a 30.97% stake in Hektar Real Estate Investment Trust, a retail-focused REIT in Malaysia listed on the Main Market of Bursa Malaysia Securities Berhad. FCT is index constituent of several benchmark indices including the FTSE EPRA/NAREIT Global Real Estate Index Series (Global Developed Index), FTSE ST Real Estate Investment Trust Index, MSCI Singapore Small Cap Index and SGX iEdge S-REIT Leaders Index. Listed on the Main Board of the Singapore Exchange Securities Trading Limited since 5 July 2006, FCT is managed by Frasers Centrepoint Asset Management Ltd. ("FCAM"), a real estate management company and a wholly-owned subsidiary of Frasers Property Limited.