Urban Edge Properties (NYSE:UE) versus Acadia Realty Trust (NYSE:AKR) Critical Comparison

Urban Edge Properties (NYSE:UE) and Acadia Realty Trust (NYSE:AKR) are both mid-cap real estate companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Dividends

Urban Edge Properties pays an annual dividend of $0.84 per share and has a dividend yield of 4.0%. Acadia Realty Trust pays an annual dividend of $0.80 per share and has a dividend yield of 4.0%. Urban Edge Properties pays out 101.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Acadia Realty Trust pays out 285.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Urban Edge Properties has increased its dividend for 2 consecutive years and Acadia Realty Trust has increased its dividend for 2 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Urban Edge Properties and Acadia Realty Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Urban Edge Properties	0	2	2	0	2.50
Acadia Realty Trust	0	3	4	1	2.75

Urban Edge Properties currently has a consensus target price of $22.67, suggesting a potential upside of 8.59%. Acadia Realty Trust has a consensus target price of $23.40, suggesting a potential upside of 17.91%. Given Acadia Realty Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Acadia Realty Trust is more favorable than Urban Edge Properties.

Profitability

This table compares Urban Edge Properties and Acadia Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Urban Edge Properties	21.12%	7.53%	3.09%
Acadia Realty Trust	10.23%	1.54%	0.87%

Insider and Institutional Ownership

94.9% of Urban Edge Properties shares are held by institutional investors. Comparatively, 97.7% of Acadia Realty Trust shares are held by institutional investors. 2.7% of Urban Edge Properties shares are held by company insiders. Comparatively, 3.1% of Acadia Realty Trust 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 and Valuation

This table compares Urban Edge Properties and Acadia Realty Trust”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Urban Edge Properties	$471.93 million	5.58	$93.54 million	$0.83	25.15
Acadia Realty Trust	$410.76 million	6.67	$16.90 million	$0.28	70.88

Urban Edge Properties has higher revenue and earnings than Acadia Realty Trust. Urban Edge Properties is trading at a lower price-to-earnings ratio than Acadia Realty Trust, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Urban Edge Properties has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, Acadia Realty Trust has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Summary

Acadia Realty Trust beats Urban Edge Properties on 10 of the 17 factors compared between the two stocks.

About Urban Edge Properties

Urban Edge Properties is a real estate investment trust that owns, manages, leases and redevelops retail properties. Its portfolio includes shopping centers and other retail destinations, with many properties anchored by grocery stores and serving densely populated communities. The company focuses on the Northeast and Mid-Atlantic, including the New York metropolitan area and markets around Washington, D.C. Its work includes leasing space to retailers and investing in property improvements and redevelopment.

About Acadia Realty Trust

Acadia Realty Trust is an equity real estate investment trust that owns, operates and invests in retail properties. Its portfolio includes shopping centers and urban street-retail properties, with tenants spanning a range of retail and service businesses. The company focuses on high-barrier-to-entry markets in the United States, including major metropolitan areas. It combines a portfolio of directly owned properties with investment funds through which it partners on additional real estate investments.