AmREIT (AMRE) and Taubman Centers (TCO) Critical Contrast

AmREIT (NYSE: AMRE) and Taubman Centers (NYSE:TCO) are both financials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for AmREIT and Taubman Centers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AmREIT 0 0 0 0 N/A
Taubman Centers 2 6 2 0 2.00

Taubman Centers has a consensus target price of $66.17, indicating a potential upside of 12.36%. Given Taubman Centers’ higher possible upside, analysts clearly believe Taubman Centers is more favorable than AmREIT.

Dividends

Taubman Centers pays an annual dividend of $2.50 per share and has a dividend yield of 4.2%. AmREIT does not pay a dividend. Taubman Centers pays out 235.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Taubman Centers has raised its dividend for 7 consecutive years.

Valuation and Earnings

This table compares AmREIT and Taubman Centers’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AmREIT N/A N/A N/A $0.24 110.63
Taubman Centers $612.56 million 5.84 $132.61 million $1.06 55.56

Taubman Centers has higher revenue and earnings than AmREIT. Taubman Centers is trading at a lower price-to-earnings ratio than AmREIT, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares AmREIT and Taubman Centers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AmREIT N/A N/A N/A
Taubman Centers 13.21% -75.87% 2.03%

Summary

Taubman Centers beats AmREIT on 8 of the 10 factors compared between the two stocks.

AmREIT Company Profile

AmREIT, Inc. (AmREIT) is a full service, vertically integrated and self-administered real estate investment trust (REIT) that owns, operates, acquires and selectively develops and redevelops primarily neighborhood and community shopping centers located in high-traffic, densely populated, affluent areas with high barriers to entry. The Company’s shopping centers are anchored by national and local retailers, including supermarket chains, drug stores and other necessity-based retailers. In June 2013, AmREIT Inc announced that it has completed the acquisition of Fountain Oaks Shopping Center, a 160,600 square foot Kroger-anchored shopping center in the north Buckhead submarket of Atlanta, Georgia. Effective September 24, 2013, AmREIT Inc, through its AmREIT Realty Investment Corp subsidiary, acquired Woodlake Square Shopping Center, an owner and operator of shopping centers. In August 2014, AmREIT Inc completed the acquisition of Tuxedo Festival Shopping Center.

Taubman Centers Company Profile

Taubman Centers, Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company’s segment is focused on owning, developing and managing regional shopping centers. The Taubman Realty Group Limited Partnership (the Operating Partnership or TRG) is majority-owned partnership subsidiary of the Company that owns direct or indirect interests in all of its real estate properties. The Company owns, leases, acquires, disposes of, develops, expands and manages regional and super-regional shopping centers and interests therein. Its owned portfolio of operating centers as of December 31, 2016 consisted of 23 urban and suburban shopping centers operating in 11 the United States states, Puerto Rico, South Korea, and China. The consolidated businesses consist of shopping centers and entities that are controlled by ownership or contractual agreements, The Taubman Company LLC (Manager), and Taubman Properties Asia LLC and its subsidiaries (Taubman Asia).

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