Ramco-Gershenson Properties Trust (NYSE: RPT) and Cedar Realty Trust (NYSE:CDR) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Institutional & Insider Ownership

92.1% of Cedar Realty Trust shares are held by institutional investors. 1.6% of Ramco-Gershenson Properties Trust shares are held by company insiders. Comparatively, 4.5% of Cedar Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Ramco-Gershenson Properties Trust and Cedar Realty Trust’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ramco-Gershenson Properties Trust $263.77 million 4.03 $165.05 million $0.41 32.63
Cedar Realty Trust $147.44 million 2.86 $81.98 million ($0.06) -85.49

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Ramco-Gershenson Properties Trust and Cedar Realty Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ramco-Gershenson Properties Trust 1 2 4 0 2.43
Cedar Realty Trust 1 1 4 0 2.50

Ramco-Gershenson Properties Trust presently has a consensus price target of $16.00, suggesting a potential upside of 19.58%. Cedar Realty Trust has a consensus price target of $6.25, suggesting a potential upside of 21.83%. Given Cedar Realty Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Cedar Realty Trust is more favorable than Ramco-Gershenson Properties Trust.

Volatility & Risk

Ramco-Gershenson Properties Trust has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, Cedar Realty Trust has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.

Profitability

This table compares Ramco-Gershenson Properties Trust and Cedar Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ramco-Gershenson Properties Trust 15.05% 4.99% 1.86%
Cedar Realty Trust 6.58% 2.49% 0.77%

Dividends

Ramco-Gershenson Properties Trust pays an annual dividend of $0.88 per share and has a dividend yield of 6.6%. Cedar Realty Trust pays an annual dividend of $0.20 per share and has a dividend yield of 3.9%. Ramco-Gershenson Properties Trust pays out 214.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cedar Realty Trust pays out -333.3% of its earnings in the form of a dividend. Cedar Realty Trust has increased its dividend for 4 consecutive years.

Summary

Ramco-Gershenson Properties Trust beats Cedar Realty Trust on 8 of the 15 factors compared between the two stocks.

About Ramco-Gershenson Properties Trust

Ramco-Gershenson Properties Trust is an equity real estate investment trust. The Company’s primary business is the ownership, management, redevelopment, development and operation of retail shopping centers. As of December 31, 2016, it owned and managed multi-anchored shopping centers in 12 metropolitan markets in the United States. It conducts its business through its operating partnership, Ramco-Gershenson Properties, L.P. It invests in large, multi-anchored shopping centers that include national chain store tenants and supermarket tenants. National chain anchor tenants in its centers include, among others, Bed Bath and Beyond, Dick’s Sporting Goods, and Home Depot. Supermarket anchor tenants in its centers include, among others, Publix Super Market, Whole Foods, Kroger and Sprouts. Its shopping centers are located in metropolitan markets, such as Metro Detroit, Southeast Florida, Greater Denver, Cincinnati, St. Louis, Jacksonville, Tampa/Lakeland, Milwaukee, Chicago and Atlanta.

About Cedar Realty Trust

Cedar Realty Trust, Inc. is a real estate investment trust (REIT). The Company focuses on ownership and operation of grocery-anchored shopping centers straddling the Washington District of Columbia (DC) to Boston corridor. As of December 31, 2016, the Company owned and managed a portfolio of 61 operating properties (excluding properties held for sale) totaling approximately 9.1 million square feet of gross leasable area (GLA). The Company focuses its investment activities on grocery-anchored shopping centers. The Company’s properties portfolio comprises 26 properties in Pennsylvania, eight properties in Massachusetts, seven properties in Connecticut, seven properties in Maryland / Washington, D.C, eight properties in Virginia, four properties in New Jersey and one property in New York. The Company’s 106 are going to expire in the year 2017. The Company conducts all of its businesses through the Cedar Realty Trust Partnership L.P. (the Operating Partnership).

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