Comparing NNN REIT (NYSE:NNN) & Cousins Properties (NYSE:CUZ)

Cousins Properties (NYSE:CUZ) and NNN REIT (NYSE:NNN) are both mid-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Profitability

This table compares Cousins Properties and NNN REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cousins Properties	5.98%	1.20%	0.65%
NNN REIT	43.22%	8.95%	4.29%

Volatility & Risk

Cousins Properties has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, NNN REIT has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.

Insider and Institutional Ownership

94.4% of Cousins Properties shares are held by institutional investors. Comparatively, 90.0% of NNN REIT shares are held by institutional investors. 1.4% of Cousins Properties shares are held by company insiders. Comparatively, 0.8% of NNN REIT shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Cousins Properties and NNN REIT”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cousins Properties	$856.76 million	5.16	$45.96 million	$0.35	75.21
NNN REIT	$869.27 million	8.97	$396.83 million	$2.08	19.73

NNN REIT has higher revenue and earnings than Cousins Properties. NNN REIT is trading at a lower price-to-earnings ratio than Cousins Properties, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for Cousins Properties and NNN REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cousins Properties	0	4	6	0	2.60
NNN REIT	1	7	1	0	2.00

Cousins Properties presently has a consensus price target of $30.60, indicating a potential upside of 16.24%. NNN REIT has a consensus price target of $43.75, indicating a potential upside of 6.61%. Given Cousins Properties’ stronger consensus rating and higher possible upside, research analysts clearly believe Cousins Properties is more favorable than NNN REIT.

Dividends

Cousins Properties pays an annual dividend of $1.28 per share and has a dividend yield of 4.9%. NNN REIT pays an annual dividend of $2.40 per share and has a dividend yield of 5.8%. Cousins Properties pays out 365.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NNN REIT pays out 115.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NNN REIT has raised its dividend for 35 consecutive years. NNN REIT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

NNN REIT beats Cousins Properties on 10 of the 17 factors compared between the two stocks.

About Cousins Properties

Cousins Properties Incorporated ("Cousins") is a fully integrated, self-administered, and self-managed real estate investment trust (REIT). The Company, based in Atlanta and acting through its operating partnership, Cousins Properties LP, primarily invests in Class A office buildings located in high-growth Sun Belt markets. Founded in 1958, Cousins creates shareholder value through its extensive expertise in the development, acquisition, leasing, and management of high-quality real estate assets. The Company has a comprehensive strategy in place based on a simple platform, trophy assets, and opportunistic investments.

About NNN REIT

NNN REIT invests primarily in high-quality retail properties subject generally to long-term, net leases. As of December 31, 2023, the company owned 3,532 properties in 49 states with a gross leasable area of approximately 36.0 million square feet and a weighted average remaining lease term of 10.1 years. NNN is one of only three publicly traded REITs to have increased annual dividends for 34 or more consecutive years.