Equity One (EQY) versus Federal Realty Investment Trust (FRT) Critical Contrast
Equity One (NYSE: EQY) and Federal Realty Investment Trust (NYSE:FRT) are both mid-cap commercial reits – nec companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.
This is a summary of recent recommendations and price targets for Equity One and Federal Realty Investment Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Federal Realty Investment Trust||1||2||8||0||2.64|
Equity One pays an annual dividend of $0.72 per share and has a dividend yield of 2.3%. Federal Realty Investment Trust pays an annual dividend of $4.00 per share and has a dividend yield of 3.1%. Equity One pays out 146.9% 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 pays out 97.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Federal Realty Investment Trust has raised its dividend for 49 consecutive years. Federal Realty Investment Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings & Valuation
This table compares Equity One and Federal Realty Investment Trust’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Federal Realty Investment Trust||$801.59 million||11.75||$249.91 million||$4.10||31.66|
Federal Realty Investment Trust has higher revenue and earnings than Equity One. Federal Realty Investment Trust is trading at a lower price-to-earnings ratio than Equity One, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Equity One has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, Federal Realty Investment Trust has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500.
This table compares Equity One and Federal Realty Investment Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Federal Realty Investment Trust||35.50%||13.28%||4.82%|
Institutional & Insider Ownership
64.0% of Equity One shares are owned by institutional investors. Comparatively, 94.7% of Federal Realty Investment Trust shares are owned by institutional investors. 35.9% of Equity One shares are owned by insiders. Comparatively, 1.1% of Federal Realty Investment Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Federal Realty Investment Trust beats Equity One on 11 of the 13 factors compared between the two stocks.
About Equity One
Equity One, Inc. is a real estate investment trust (REIT). The Company owns, manages, acquires, develops and redevelops shopping centers and retail properties located in supply constrained suburban and urban communities. As of December 31, 2016, the Company’s portfolio consisted of 122 properties, including 101 retail properties and five non-retail properties totaling approximately 12.8 million square feet of gross leasable area (GLA), 10 development or redevelopment properties with approximately 2.3 million square feet of GLA, and six land parcels. Its retail occupancy excluding developments and redevelopments was 95.8% and included national, regional and local tenants as of December 31, 2016. In addition, the Company had joint venture interests in six retail properties and two office buildings totaling approximately 1.4 million square feet of GLA as of December 31, 2016.
About Federal Realty Investment Trust
Federal Realty Investment Trust is an equity real estate investment trust (REIT). The Company specializes in the ownership, management and redevelopment of retail and mixed-use properties located primarily in affluent communities in selected metropolitan markets in the Northeast and Mid-Atlantic regions of the United States, as well as in California and South Florida. As of December 31, 2016, the Company owned or had an interest in community and neighborhood shopping centers and mixed-use properties, which operated as 96 retail real estate projects and included approximately 22.6 million square feet. As of December 31, 2016, its 96 retail shopping center and mixed-use properties were located in 12 states and the District of Columbia. As of December 31, 2016, there were approximately 2,900 leases with tenants providing a range of retail products and services. These tenants range from sole proprietorships to national retailers, or corporate group of tenants.
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