Cedar Realty Trust (NYSE: CDR) and Acadia Realty Trust (NYSE:AKR) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.
Earnings and Valuation
This table compares Cedar Realty Trust and Acadia Realty Trust’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cedar Realty Trust||$147.44 million||2.72||$81.98 million||($0.06)||-81.32|
|Acadia Realty Trust||$251.17 million||9.51||$140.01 million||$0.64||44.59|
Cedar Realty Trust pays an annual dividend of $0.20 per share and has a dividend yield of 4.1%. Acadia Realty Trust pays an annual dividend of $1.04 per share and has a dividend yield of 3.6%. Cedar Realty Trust pays out -333.3% of its earnings in the form of a dividend. Acadia Realty Trust pays out 162.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cedar Realty Trust has increased its dividend for 4 consecutive years. Cedar Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
92.1% of Cedar Realty Trust shares are held by institutional investors. 4.5% of Cedar Realty Trust shares are held by insiders. Comparatively, 1.7% of Acadia Realty Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Cedar Realty Trust and Acadia Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cedar Realty Trust||6.58%||2.49%||0.77%|
|Acadia Realty Trust||23.63%||2.50%||1.37%|
Risk & Volatility
Cedar Realty Trust has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Acadia Realty Trust has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500.
This is a summary of recent ratings for Cedar Realty Trust and Acadia Realty Trust, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cedar Realty Trust||1||1||4||0||2.50|
|Acadia Realty Trust||0||2||3||0||2.60|
Cedar Realty Trust presently has a consensus target price of $6.25, suggesting a potential upside of 28.07%. Acadia Realty Trust has a consensus target price of $33.50, suggesting a potential upside of 17.38%. Given Cedar Realty Trust’s higher probable upside, equities research analysts clearly believe Cedar Realty Trust is more favorable than Acadia Realty Trust.
Acadia Realty Trust beats Cedar Realty Trust on 9 of the 17 factors compared between the two stocks.
About Cedar Realty Trust
Cedar Realty Trust, Inc. is a real estate investment trust (REIT). The Company focuses on ownership and operation of grocery-anchored shopping centers straddling the Washington District of Columbia (DC) to Boston corridor. As of December 31, 2016, the Company owned and managed a portfolio of 61 operating properties (excluding properties held for sale) totaling approximately 9.1 million square feet of gross leasable area (GLA). The Company focuses its investment activities on grocery-anchored shopping centers. The Company’s properties portfolio comprises 26 properties in Pennsylvania, eight properties in Massachusetts, seven properties in Connecticut, seven properties in Maryland / Washington, D.C, eight properties in Virginia, four properties in New Jersey and one property in New York. The Company’s 106 are going to expire in the year 2017. The Company conducts all of its businesses through the Cedar Realty Trust Partnership L.P. (the Operating Partnership).
About Acadia Realty Trust
Acadia Realty Trust is a real estate investment trust. The Company is focused on the ownership, acquisition, development and management of retail properties located in the United States. It operates through three segments: Core Portfolio, Funds and Structured Financing. Core Portfolio and Fund properties primarily consist of street and urban retail, and dense suburban shopping centers. Funds holds primarily retail real estate in which it co-invests with institutional investors. Structured Financing consists of earnings and expenses related to notes and mortgages receivable, which are held within the Core Portfolio or the Funds. As of December 31, 2016, it had ownership interests in 182 properties within its core portfolio. In the Core Portfolio segment, the Company owned an interest in a 311,000 square foot shopping center, a 28,000 square foot retail and an interest in an 87,000 square foot retail property, among others, as of December 31, 2016.
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