W.P. Carey (WPC) & Its Peers Head-To-Head Review

W.P. Carey (NYSE:WPC) is one of 111 public companies in the “Diversified REITs” industry, but how does it compare to its peers? We will compare W.P. Carey to related businesses based on the strength of its analyst recommendations, earnings, valuation, risk, dividends, profitability and institutional ownership.

Risk and Volatility

W.P. Carey has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, W.P. Carey’s peers have a beta of 1.44, suggesting that their average share price is 44% more volatile than the S&P 500.

Dividends

W.P. Carey pays an annual dividend of $3.80 per share and has a dividend yield of 5.9%. W.P. Carey pays out 131.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Diversified REITs” companies pay a dividend yield of 6.8% and pay out -1,298.3% of their earnings in the form of a dividend. W.P. Carey has raised its dividend for 2 consecutive years. W.P. Carey lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation and Earnings

This table compares W.P. Carey and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
W.P. Carey	$1.72 billion	$466.36 million	22.36
W.P. Carey Competitors	$195.87 million	$18.17 million	6.13

W.P. Carey has higher revenue and earnings than its peers. W.P. Carey is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares W.P. Carey and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
W.P. Carey	35.60%	7.67%	3.54%
W.P. Carey Competitors	-33.55%	-4.08%	1.01%

Institutional & Insider Ownership

73.7% of W.P. Carey shares are held by institutional investors. Comparatively, 39.2% of shares of all “Diversified REITs” companies are held by institutional investors. 1.0% of W.P. Carey shares are held by company insiders. Comparatively, 12.4% of shares of all “Diversified REITs” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for W.P. Carey and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
W.P. Carey	0	8	8	0	2.50
W.P. Carey Competitors	495	2474	1972	23	2.31

W.P. Carey presently has a consensus price target of $76.79, suggesting a potential upside of 18.43%. As a group, “Diversified REITs” companies have a potential upside of 7.85%. Given W.P. Carey’s stronger consensus rating and higher possible upside, analysts clearly believe W.P. Carey is more favorable than its peers.

Summary

W.P. Carey beats its peers on 10 of the 15 factors compared.

W.P. Carey Company Profile

W.P. Carey Inc. is a real estate investment trust that owns and manages commercial properties leased to businesses under long-term net leases. Under these arrangements, tenants typically pay property expenses such as taxes, insurance and maintenance in addition to rent. The company’s portfolio focuses primarily on industrial and warehouse properties, along with retail and self-storage facilities. Its properties serve tenants in the United States and Europe. In 2023, W.P. Carey separated its office properties into a new, publicly traded company as part of a shift toward its other property types.