Kite Realty Group Trust (NYSE: KRG) and Retail Opportunity Investments Corp. (NASDAQ:ROIC) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, institutional ownership, valuation, earnings and analyst recommendations.

Profitability

This table compares Kite Realty Group Trust and Retail Opportunity Investments Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kite Realty Group Trust 3.29% 0.73% 0.33%
Retail Opportunity Investments Corp. 13.92% 2.71% 1.31%

Dividends

Kite Realty Group Trust pays an annual dividend of $1.21 per share and has a dividend yield of 6.1%. Retail Opportunity Investments Corp. pays an annual dividend of $0.75 per share and has a dividend yield of 4.0%. 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. Retail Opportunity Investments Corp. pays out 227.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Retail Opportunity Investments Corp. has increased its dividend for 3 consecutive years.

Valuation & Earnings

This table compares Kite Realty Group Trust and Retail Opportunity Investments Corp.’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Kite Realty Group Trust $360.76 million 4.58 $224.39 million $0.14 141.07
Retail Opportunity Investments Corp. $254.96 million 8.07 $162.92 million $0.33 56.85

Kite Realty Group Trust has higher revenue and earnings than Retail Opportunity Investments Corp.. Retail Opportunity Investments Corp. 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.

Insider & Institutional Ownership

95.7% of Kite Realty Group Trust shares are owned by institutional investors. Comparatively, 94.9% of Retail Opportunity Investments Corp. shares are owned by institutional investors. 1.9% of Kite Realty Group Trust shares are owned by company insiders. Comparatively, 2.2% of Retail Opportunity Investments Corp. shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Kite Realty Group Trust and Retail Opportunity Investments Corp., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kite Realty Group Trust 0 3 3 1 2.71
Retail Opportunity Investments Corp. 0 4 3 0 2.43

Kite Realty Group Trust currently has a consensus target price of $26.00, indicating a potential upside of 31.65%. Retail Opportunity Investments Corp. has a consensus target price of $22.33, indicating a potential upside of 19.05%. Given Kite Realty Group Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Kite Realty Group Trust is more favorable than Retail Opportunity Investments Corp..

Risk & Volatility

Kite Realty Group Trust has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, Retail Opportunity Investments Corp. has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.

Summary

Retail Opportunity Investments Corp. beats Kite Realty Group Trust on 10 of the 17 factors compared between the two stocks.

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.

Retail Opportunity Investments Corp. Company Profile

Retail Opportunity Investments Corp. (ROIC) is a fully integrated, self-managed real estate investment trust (REIT). The Company specializes in the acquisition, ownership and management of necessity-based community and neighborhood shopping centers on the west coast of the United States, anchored by supermarkets and drugstores. Retail Opportunity Investments Partnership, LP is the operating partnership of the Company. The Operating Partnership holds substantially all the assets of the Company and directly or indirectly holds the ownership interests in the Company’s real estate ventures. The Operating Partnership conducts the operations of the Company’s business. As of December 31, 2016, the Company’s portfolio consisted of 82 properties (81 retail and one office) totaling approximately 9.4 million square feet of gross leasable area (GLA). As of December 31, 2016, the Company’s portfolio was approximately 97.6% leased.

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