Contrasting FrontView REIT (NYSE:FVR) and Federal Realty Investment Trust (NYSE:FRT)

Federal Realty Investment Trust (NYSE:FRT) and FrontView REIT (NYSE:FVR) are both real estate companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.

Institutional & Insider Ownership

93.9% of Federal Realty Investment Trust shares are held by institutional investors. 1.1% of Federal Realty Investment Trust shares are held by company insiders. Comparatively, 9.6% of FrontView REIT shares are held 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.

Risk and Volatility

Federal Realty Investment Trust has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, FrontView REIT has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.

Profitability

This table compares Federal Realty Investment Trust and FrontView REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Federal Realty Investment Trust	32.67%	13.65%	4.83%
FrontView REIT	2.10%	0.29%	0.17%

Earnings and Valuation

This table compares Federal Realty Investment Trust and FrontView REIT”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Federal Realty Investment Trust	$1.28 billion	7.94	$411.08 million	$4.95	23.74
FrontView REIT	$67.11 million	7.24	-$3.83 million	$0.03	662.33

Federal Realty Investment Trust has higher revenue and earnings than FrontView REIT. Federal Realty Investment Trust is trading at a lower price-to-earnings ratio than FrontView REIT, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations for Federal Realty Investment Trust and FrontView REIT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Federal Realty Investment Trust	0	6	10	2	2.78
FrontView REIT	0	4	7	2	2.85

Federal Realty Investment Trust currently has a consensus target price of $128.44, indicating a potential upside of 9.32%. FrontView REIT has a consensus target price of $22.50, indicating a potential upside of 13.24%. Given FrontView REIT’s stronger consensus rating and higher probable upside, analysts plainly believe FrontView REIT is more favorable than Federal Realty Investment Trust.

Dividends

Federal Realty Investment Trust pays an annual dividend of $4.52 per share and has a dividend yield of 3.8%. FrontView REIT pays an annual dividend of $0.86 per share and has a dividend yield of 4.3%. Federal Realty Investment Trust pays out 91.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. FrontView REIT pays out 2,866.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Federal Realty Investment Trust has raised its dividend for 58 consecutive years.

Summary

Federal Realty Investment Trust beats FrontView REIT on 11 of the 17 factors compared between the two stocks.

About Federal Realty Investment Trust

Federal Realty Investment Trust is an equity real estate investment trust, which engages in the provision of ownership, management, and redevelopment of retail and mixed-use properties located primarily in communities where demand exceeds supply in strategically selected metropolitan markets. The company was founded in 1962 and is headquartered in North Bethesda, MD.

About FrontView REIT

FrontView REIT specializes in real estate investing.