Analyzing Macerich (NYSE:MAC) & Curbline Properties (NYSE:CURB)

Curbline Properties (NYSE:CURB) and Macerich (NYSE:MAC) are both mid-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, valuation, earnings and profitability.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Curbline Properties and Macerich, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Curbline Properties	0	2	6	0	2.75
Macerich	3	4	5	0	2.17

Curbline Properties presently has a consensus price target of $27.63, suggesting a potential upside of 1.36%. Macerich has a consensus price target of $19.76, suggesting a potential downside of 2.39%. Given Curbline Properties’ stronger consensus rating and higher probable upside, research analysts plainly believe Curbline Properties is more favorable than Macerich.

Profitability

This table compares Curbline Properties and Macerich’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Curbline Properties	21.78%	2.10%	1.76%
Macerich	-19.44%	-7.32%	-2.25%

Risk & Volatility

Curbline Properties has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, Macerich has a beta of 2.16, suggesting that its stock price is 116% more volatile than the S&P 500.

Insider and Institutional Ownership

87.4% of Macerich shares are owned by institutional investors. 8.6% of Curbline Properties shares are owned by company insiders. Comparatively, 0.2% of Macerich shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Curbline Properties and Macerich”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Curbline Properties	$182.89 million	15.70	$39.83 million	$0.38	71.72
Macerich	$1.01 billion	5.11	-$194.12 million	($0.77)	-26.29

Curbline Properties has higher earnings, but lower revenue than Macerich. Macerich is trading at a lower price-to-earnings ratio than Curbline Properties, indicating that it is currently the more affordable of the two stocks.

Dividends

Curbline Properties pays an annual dividend of $0.64 per share and has a dividend yield of 2.3%. Macerich pays an annual dividend of $0.68 per share and has a dividend yield of 3.4%. Curbline Properties pays out 168.4% 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 -88.3% of its earnings in the form of a dividend. Macerich is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Curbline Properties beats Macerich on 11 of the 16 factors compared between the two stocks.

About Curbline Properties

Curbline Properties Corp. is a real estate investment trust which is an owner and manager of convenience shopping centers positioned on the curbline of well-trafficked intersections and major vehicular corridors in suburban. Curbline Properties Corp. is based in NEW YORK.

About Macerich

Macerich is a fully integrated, self-managed and self-administered real estate investment trust (REIT). As a leading owner, operator and developer of high-quality retail real estate in densely populated and attractive U.S. markets, Macerich’s portfolio is concentrated in California, the Pacific Northwest, Phoenix/Scottsdale, and the Metro New York to Washington, D.C. corridor. Developing and managing properties that serve as community cornerstones, Macerich currently owns 47 million square feet of real estate consisting primarily of interests in 44 regional town centers. Macerich is firmly dedicated to advancing environmental goals, social good and sound corporate governance. A recognized leader in sustainability, Macerich has achieved a #1 Global Real Estate Sustainability Benchmark (GRESB) ranking for the North American retail sector for nine consecutive years (2015-2023).