Macerich Company (The) (NYSE: MAC) and Kite Realty Group Trust (NYSE:KRG) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.

Profitability

This table compares Macerich Company (The) and Kite Realty Group Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Macerich Company (The) 14.39% 3.38% 1.49%
Kite Realty Group Trust 3.29% 0.73% 0.33%

Dividends

Macerich Company (The) pays an annual dividend of $2.84 per share and has a dividend yield of 5.0%. Kite Realty Group Trust pays an annual dividend of $1.21 per share and has a dividend yield of 6.1%. Macerich Company (The) pays out 278.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kite Realty Group Trust pays out 864.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Macerich Company (The) has increased its dividend for 6 consecutive years and Kite Realty Group Trust has increased its dividend for 3 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Macerich Company (The) and Kite Realty Group Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Macerich Company (The) 1 8 5 0 2.29
Kite Realty Group Trust 0 3 3 1 2.71

Macerich Company (The) currently has a consensus price target of $66.85, suggesting a potential upside of 18.44%. Kite Realty Group Trust has a consensus price target of $26.00, suggesting a potential upside of 30.13%. Given Kite Realty Group Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Kite Realty Group Trust is more favorable than Macerich Company (The).

Risk & Volatility

Macerich Company (The) has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, Kite Realty Group Trust has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.

Valuation & Earnings

This table compares Macerich Company (The) and Kite Realty Group Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Macerich Company (The) $1.07 billion 7.46 $635.66 million $1.02 55.33
Kite Realty Group Trust $360.76 million 4.63 $224.39 million $0.14 142.71

Macerich Company (The) has higher revenue and earnings than Kite Realty Group Trust. Macerich Company (The) is trading at a lower price-to-earnings ratio than Kite Realty Group Trust, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

97.0% of Macerich Company (The) shares are owned by institutional investors. Comparatively, 95.7% of Kite Realty Group Trust shares are owned by institutional investors. 3.8% of Macerich Company (The) shares are owned by company insiders. Comparatively, 1.9% of Kite Realty Group Trust shares are owned 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.

Summary

Macerich Company (The) beats Kite Realty Group Trust on 14 of the 18 factors compared between the two stocks.

Macerich Company (The) Company Profile

The Macerich Company is a self-administered and self-managed real estate investment trust (REIT). The Company is involved in the acquisition, ownership, development, redevelopment, management and leasing of regional and community/power shopping centers located throughout the United States. The Company owns ownership interests in, The Macerich Partnership, L.P. (the Operating Partnership). As of December 31, 2016, the Company, through its operating partnership, had ownership interests in 50 regional shopping centers and seven community/power shopping centers. These 57 regional and community/power shopping centers consisted of approximately 56 million square feet of gross leasable area (GLA), as of December 31, 2016. The Company’s properties include Danbury Fair Mall, Desert Sky Mall, Fresno Fashion Fair, NorthPark Mall, Oaks, The, Towne Mall, Valley Mall, Arrowhead Towne Center, Deptford Mall and South Plains Mall.

Kite Realty Group Trust Company Profile

Kite Realty Group Trust is a real estate investment trust. The Company, through its subsidiary, Kite Realty Group, L.P., owns interests in various operating subsidiaries and joint ventures engaged in the ownership, operation, acquisition, development and redevelopment of neighborhood and community shopping centers in selected markets in the United States. As of December 31, 2016, the Company owned interests in 108 operating retail properties totaling approximately 21.4 million square feet of gross leasable area (including approximately 6.3 million square feet of non-owned anchor space) located in 20 states. As of December 31, 2016, the Company had an interest in two development projects under construction. In addition to its development projects, as of December 31, 2016, the Company had nine redevelopment projects. As of December 31, 2016, the Company owned interests in one office operating property and an associated parking garage.

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