Reviewing Excel Trust (EXL) & Federal Realty Investment Trust (FRT)

Federal Realty Investment Trust (NYSE: FRT) and Excel Trust (NYSE:EXL) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings and target prices for Federal Realty Investment Trust and Excel Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Federal Realty Investment Trust 1 2 7 0 2.60
Excel Trust 0 0 0 0 N/A

Federal Realty Investment Trust presently has a consensus target price of $140.44, suggesting a potential upside of 10.97%. Given Federal Realty Investment Trust’s higher probable upside, analysts clearly believe Federal Realty Investment Trust is more favorable than Excel Trust.

Profitability

This table compares Federal Realty Investment Trust and Excel Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Federal Realty Investment Trust 35.50% 13.28% 4.82%
Excel Trust 9.45% 0.65% 0.88%

Dividends

Federal Realty Investment Trust pays an annual dividend of $4.00 per share and has a dividend yield of 3.2%. Excel Trust does not pay a dividend. Federal Realty Investment Trust pays out 97.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Federal Realty Investment Trust has increased its dividend for 7 consecutive years and Excel Trust has increased its dividend for 49 consecutive years.

Institutional and Insider Ownership

93.9% of Federal Realty Investment Trust shares are owned by institutional investors. 1.1% of Federal Realty Investment Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

Federal Realty Investment Trust has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500. Comparatively, Excel Trust has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500.

Earnings and Valuation

This table compares Federal Realty Investment Trust and Excel Trust’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Federal Realty Investment Trust $801.59 million 11.45 $249.91 million $4.10 30.87
Excel Trust N/A N/A N/A $0.26 60.92

Federal Realty Investment Trust has higher revenue and earnings than Excel Trust. Federal Realty Investment Trust is trading at a lower price-to-earnings ratio than Excel Trust, indicating that it is currently the more affordable of the two stocks.

Summary

Federal Realty Investment Trust beats Excel Trust on 10 of the 13 factors compared between the two stocks.

About Federal Realty Investment Trust

Federal Realty Investment Trust is an equity real estate investment trust (REIT). The Company specializes in the ownership, management and redevelopment of retail and mixed-use properties located primarily in affluent communities in selected metropolitan markets in the Northeast and Mid-Atlantic regions of the United States, as well as in California and South Florida. As of December 31, 2016, the Company owned or had an interest in community and neighborhood shopping centers and mixed-use properties, which operated as 96 retail real estate projects and included approximately 22.6 million square feet. As of December 31, 2016, its 96 retail shopping center and mixed-use properties were located in 12 states and the District of Columbia. As of December 31, 2016, there were approximately 2,900 leases with tenants providing a range of retail products and services. These tenants range from sole proprietorships to national retailers, or corporate group of tenants.

About Excel Trust

Excel Trust, Inc. is a real estate investment trust (REIT). The Company is a vertically integrated, self-administered, self-managed real estate firm with the principal objective of acquiring, financing, developing, leasing, owning and managing community and power centers, grocery anchored neighborhood centers and freestanding retail properties. It operates through three segments: retail properties, multi-family properties and office properties. It owns approximately 38 consolidated retail operating properties with a total of approximately 7.2 million square feet of gross leasable area (GLA). The multi-family segment consists of apartment units at one retail property, West Broad Village, which is located in Richmond, Virginia. The office segment consists of two properties, Excel Centre, a portion of which is utilized as its headquarters, and the Promenade Corporate Center. These office properties total approximately 338,339 square feet of GLA.

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