Contrasting Cedar Realty Trust (CDR) & National Retail Properties (NNN)

Cedar Realty Trust (NYSE: CDR) and National Retail Properties (NYSE:NNN) are both financials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Institutional & Insider Ownership

92.6% of Cedar Realty Trust shares are held by institutional investors. Comparatively, 90.5% of National Retail Properties shares are held by institutional investors. 4.5% of Cedar Realty Trust shares are held by company insiders. Comparatively, 1.0% of National Retail Properties shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Cedar Realty Trust and National Retail Properties’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cedar Realty Trust $151.09 million 3.66 $8.94 million ($0.07) -86.43
National Retail Properties $533.65 million 12.06 $239.50 million $1.22 34.70

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

Analyst Recommendations

This is a summary of recent recommendations for Cedar Realty Trust and National Retail Properties, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cedar Realty Trust 1 2 3 0 2.33
National Retail Properties 0 0 5 0 3.00

Cedar Realty Trust currently has a consensus price target of $5.75, indicating a potential downside of 4.96%. National Retail Properties has a consensus price target of $49.00, indicating a potential upside of 15.73%. Given National Retail Properties’ stronger consensus rating and higher probable upside, analysts clearly believe National Retail Properties is more favorable than Cedar Realty Trust.

Profitability

This table compares Cedar Realty Trust and National Retail Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cedar Realty Trust 11.42% 4.18% 1.34%
National Retail Properties 44.96% 8.47% 4.08%

Risk and Volatility

Cedar Realty Trust has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, National Retail Properties has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500.

Dividends

Cedar Realty Trust pays an annual dividend of $0.20 per share and has a dividend yield of 3.3%. National Retail Properties pays an annual dividend of $1.90 per share and has a dividend yield of 4.5%. Cedar Realty Trust pays out -285.7% of its earnings in the form of a dividend. National Retail Properties pays out 155.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Retail Properties has raised its dividend for 7 consecutive years. National Retail Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

National Retail Properties beats Cedar Realty Trust on 13 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 National Retail Properties

National Retail Properties, Inc. is a real estate investment trust (REIT). The Company acquires, owns, invests in and develops properties that are leased primarily to retail tenants under long-term net leases and are primarily held for investment. As of December 31, 2016, it owned 2,535 properties with an aggregate gross leasable area of approximately 27,204,000 square feet, located in 48 states. The Company focuses on investing in a range of property and tenant types; leases, mortgages and other types of real estate interests; loans secured by personal property; loans secured by partnership or membership interests in partnerships or limited liability companies, and securities of other REITs, or other issuers, including for the purpose of exercising control over such entities. The Company owns a portfolio of freestanding retail stores across the United States. It owns approximately 2,290 stores, which are leased to over 400 tenants in approximately 40 different retail categories.

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