Washington Real Estate Investment Trust (NYSE: WRE) and Equity One (NYSE:EQY) are both mid-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.

Dividends

Washington Real Estate Investment Trust pays an annual dividend of $1.20 per share and has a dividend yield of 4.1%. Equity One pays an annual dividend of $0.72 per share and has a dividend yield of 2.3%. Washington Real Estate Investment Trust pays out 400.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.

Profitability

This table compares Washington Real Estate Investment Trust and Equity One’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Washington Real Estate Investment Trust 7.10% 2.10% 0.98%
Equity One 18.64% 3.82% 2.05%

Volatility and Risk

Washington Real Estate Investment Trust has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, Equity One has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Insider and Institutional Ownership

85.4% of Washington Real Estate Investment Trust shares are owned by institutional investors. Comparatively, 64.0% of Equity One shares are owned by institutional investors. 0.6% of Washington Real Estate Investment Trust shares are owned by company insiders. Comparatively, 35.9% of Equity One shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Washington Real Estate Investment Trust and Equity One’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Washington Real Estate Investment Trust $313.26 million 7.35 $119.33 million $0.30 97.77
Equity One N/A N/A N/A $0.49 62.96

Washington Real Estate Investment Trust has higher revenue and earnings than Equity One. Equity One is trading at a lower price-to-earnings ratio than Washington Real Estate Investment Trust, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Washington Real Estate Investment Trust and Equity One, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Washington Real Estate Investment Trust 1 1 3 0 2.40
Equity One 0 0 0 0 N/A

Washington Real Estate Investment Trust presently has a consensus price target of $33.88, suggesting a potential upside of 15.50%. Given Washington Real Estate Investment Trust’s higher possible upside, research analysts clearly believe Washington Real Estate Investment Trust is more favorable than Equity One.

Summary

Equity One beats Washington Real Estate Investment Trust on 7 of the 13 factors compared between the two stocks.

About Washington Real Estate Investment Trust

Washington Real Estate Investment Trust is a self-administered equity real estate investment trust. The Company’s business consists of the ownership and operation of real property in the greater Washington metro region. The Company owns a diversified portfolio of office buildings, multifamily buildings and retail centers. The Company’s segments include office, multifamily and retail. The Company’s office properties provide office space for various types of businesses and professions. The Company’s multifamily properties provide rental housing for individuals and families throughout the Washington metro region. Its retail properties are typically grocery store anchored neighborhood centers that include other small shop tenants or regional power centers with various junior box tenants. As of April 4, 2017, it owned a diversified portfolio of 50 properties, totaling approximately 6.0 million square feet of commercial space and 4,480 residential units, and land held for development.

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.

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