National Retail Properties (NYSE: NNN) is one of 34 publicly-traded companies in the “Retail REITs” industry, but how does it contrast to its peers? We will compare National Retail Properties to similar companies based on the strength of its dividends, earnings, risk, valuation, profitability, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

89.4% of National Retail Properties shares are held by institutional investors. Comparatively, 86.2% of shares of all “Retail REITs” companies are held by institutional investors. 1.0% of National Retail Properties shares are held by insiders. Comparatively, 11.3% of shares of all “Retail REITs” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

National Retail Properties pays an annual dividend of $1.90 per share and has a dividend yield of 4.5%. National Retail Properties pays out 142.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Retail REITs” companies pay a dividend yield of 4.3% and pay out 143.3% of their earnings in the form of a dividend. National Retail Properties has increased its dividend for 7 consecutive years. National Retail Properties is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares National Retail Properties and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
National Retail Properties $562.72 million $500.46 million 31.47
National Retail Properties Competitors $727.99 million $483.06 million 28.51

National Retail Properties’ peers have higher revenue, but lower earnings than National Retail Properties. National Retail Properties is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

National Retail Properties has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500. Comparatively, National Retail Properties’ peers have a beta of 0.67, indicating that their average stock price is 33% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for National Retail Properties and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Retail Properties 0 2 4 0 2.67
National Retail Properties Competitors 262 1219 1195 24 2.36

National Retail Properties currently has a consensus price target of $48.20, indicating a potential upside of 15.17%. As a group, “Retail REITs” companies have a potential upside of 14.73%. Given National Retail Properties’ stronger consensus rating and higher probable upside, analysts plainly believe National Retail Properties is more favorable than its peers.

Profitability

This table compares National Retail Properties and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Retail Properties 44.17% 8.22% 4.03%
National Retail Properties Competitors 21.35% 5.12% 2.89%

Summary

National Retail Properties beats its peers on 10 of the 15 factors compared.

About National Retail Properties

National Retail Properties, Inc. is a real estate investment trust (REIT). The Company acquires, owns, invests in and develops properties that are leased primarily to retail tenants under long-term net leases and are primarily held for investment. As of December 31, 2016, it owned 2,535 properties with an aggregate gross leasable area of approximately 27,204,000 square feet, located in 48 states. The Company focuses on investing in a range of property and tenant types; leases, mortgages and other types of real estate interests; loans secured by personal property; loans secured by partnership or membership interests in partnerships or limited liability companies, and securities of other REITs, or other issuers, including for the purpose of exercising control over such entities. The Company owns a portfolio of freestanding retail stores across the United States. It owns approximately 2,290 stores, which are leased to over 400 tenants in approximately 40 different retail categories.

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