Mackenzie Realty Capital (NASDAQ:MKZR – Get Free Report) and Kilroy Realty (NYSE:KRC – Get Free Report) are both real estate companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, institutional ownership, valuation, dividends and analyst recommendations.
Dividends
Mackenzie Realty Capital pays an annual dividend of $2.00 per share and has a dividend yield of 141.8%. Kilroy Realty pays an annual dividend of $2.16 per share and has a dividend yield of 6.3%. Mackenzie Realty Capital pays out -32.5% of its earnings in the form of a dividend. Kilroy Realty pays out 152.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mackenzie Realty Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Mackenzie Realty Capital and Kilroy Realty’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mackenzie Realty Capital | -90.30% | -18.99% | -7.07% |
| Kilroy Realty | 15.47% | 3.04% | 1.56% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mackenzie Realty Capital | 1 | 0 | 0 | 0 | 1.00 |
| Kilroy Realty | 2 | 9 | 5 | 0 | 2.19 |
Kilroy Realty has a consensus price target of $39.33, suggesting a potential upside of 14.02%. Given Kilroy Realty’s stronger consensus rating and higher probable upside, analysts plainly believe Kilroy Realty is more favorable than Mackenzie Realty Capital.
Valuation and Earnings
This table compares Mackenzie Realty Capital and Kilroy Realty”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mackenzie Realty Capital | $19.38 million | 0.16 | -$25.92 million | ($6.15) | -0.23 |
| Kilroy Realty | $1.11 billion | 3.61 | $276.12 million | $1.42 | 24.29 |
Kilroy Realty has higher revenue and earnings than Mackenzie Realty Capital. Mackenzie Realty Capital is trading at a lower price-to-earnings ratio than Kilroy Realty, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
94.2% of Kilroy Realty shares are held by institutional investors. 6.3% of Mackenzie Realty Capital shares are held by company insiders. Comparatively, 0.8% of Kilroy Realty shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Mackenzie Realty Capital has a beta of -0.46, meaning that its stock price is 146% less volatile than the S&P 500. Comparatively, Kilroy Realty has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.
Summary
Kilroy Realty beats Mackenzie Realty Capital on 13 of the 16 factors compared between the two stocks.
About Mackenzie Realty Capital
MacKenzie Realty Capital Inc. is a REIT which focused on investing in multifamily housing and office real estate properties located principally in the United States. MacKenzie Realty Capital Inc. is based in ORINDA, Calif.
About Kilroy Realty
Kilroy Realty Corporation (NYSE: KRC, the company, Kilroy) is a leading U.S. landlord and developer, with operations in San Diego, Greater Los Angeles, the San Francisco Bay Area, Greater Seattle and Austin. The company has earned global recognition for sustainability, building operations, innovation and design. As a pioneer and innovator in the creation of a more sustainable real estate industry, the company's approach to modern business environments helps drive creativity and productivity for some of the world's leading technology, entertainment, life science and business services companies. The company is a publicly traded real estate investment trust (REIT) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office, life science and mixed-use projects. As of December 31, 2023, Kilroy's stabilized portfolio totaled approximately 17.0 million square feet of primarily office and life science space that was 85.0% occupied and 86.4% leased. The company also had approximately 1,000 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 92.5%. In addition, the company had two in-process life science redevelopment projects totaling approximately 100,000 square feet with total estimated redevelopment costs of $80.0 million and one approximately 875,000 square foot in-process development project with a total estimated investment of $1.0 billion.
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