Contrasting Pennsylvania Real Estate Investment Trust (PEI) & Its Competitors

Pennsylvania Real Estate Investment Trust (NYSE: PEI) is one of 34 public companies in the “Retail REITs” industry, but how does it weigh in compared to its peers? We will compare Pennsylvania Real Estate Investment Trust to related companies based on the strength of its risk, institutional ownership, analyst recommendations, dividends, earnings, profitability and valuation.

Insider & Institutional Ownership

97.7% of Pennsylvania Real Estate Investment Trust shares are held by institutional investors. Comparatively, 84.9% of shares of all “Retail REITs” companies are held by institutional investors. 4.4% of Pennsylvania Real Estate Investment Trust shares are held by company insiders. Comparatively, 9.5% of shares of all “Retail REITs” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Pennsylvania Real Estate Investment Trust pays an annual dividend of $0.84 per share and has a dividend yield of 8.5%. Pennsylvania Real Estate Investment Trust pays out -64.1% of its earnings in the form of a dividend. As a group, “Retail REITs” companies pay a dividend yield of 4.5% and pay out 141.7% of their earnings in the form of a dividend. Pennsylvania Real Estate Investment Trust has raised its dividend for 5 consecutive years. Pennsylvania Real Estate Investment Trust is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Pennsylvania Real Estate Investment Trust and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pennsylvania Real Estate Investment Trust 1 6 0 0 1.86
Pennsylvania Real Estate Investment Trust Competitors 137 984 1088 21 2.45

Pennsylvania Real Estate Investment Trust presently has a consensus target price of $13.92, suggesting a potential upside of 41.14%. As a group, “Retail REITs” companies have a potential upside of 17.61%. Given Pennsylvania Real Estate Investment Trust’s higher probable upside, research analysts clearly believe Pennsylvania Real Estate Investment Trust is more favorable than its peers.

Valuation and Earnings

This table compares Pennsylvania Real Estate Investment Trust and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Pennsylvania Real Estate Investment Trust $392.34 million $217.76 million -7.53
Pennsylvania Real Estate Investment Trust Competitors $726.42 million $482.85 million 25.80

Pennsylvania Real Estate Investment Trust’s peers have higher revenue and earnings than Pennsylvania Real Estate Investment Trust. Pennsylvania Real Estate Investment Trust is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Pennsylvania Real Estate Investment Trust and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pennsylvania Real Estate Investment Trust -18.13% -9.06% -2.66%
Pennsylvania Real Estate Investment Trust Competitors 21.89% 5.17% 2.93%

Volatility and Risk

Pennsylvania Real Estate Investment Trust has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, Pennsylvania Real Estate Investment Trust’s peers have a beta of 0.67, suggesting that their average share price is 33% less volatile than the S&P 500.

Summary

Pennsylvania Real Estate Investment Trust peers beat Pennsylvania Real Estate Investment Trust on 10 of the 15 factors compared.

Pennsylvania Real Estate Investment Trust Company Profile

Pennsylvania Real Estate Investment Trust (PREIT) is a self-managed and self-administered real estate investment trust (REIT). The Company’s primary business is owning and operating retail shopping malls, which it does primarily through operating partnership, PREIT Associates, L.P. (PREIT Associates). The Company is engaged in the ownership, management, leasing, acquisition, redevelopment, development and disposition of shopping malls. The Company has a primary investment focus on retail shopping malls located in the eastern half of the United States, primarily in the Mid-Atlantic region. As of December 31, 2016, the Company owned interests in 30 retail properties, of which 26 are operating properties and four are development or redevelopment properties. As of December 31, 2016, the Company’s 26 operating properties included 22 shopping malls and four other retail properties, had a total of 21.7 million square feet and were located in nine states.

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