Head-To-Head Review: Kite Realty Group Trust (KRG) & Retail Properties of America (RPAI)

Kite Realty Group Trust (NYSE: KRG) and Retail Properties of America (NYSE:RPAI) are both financials companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, analyst recommendations, profitability, institutional ownership and earnings.

Valuation and Earnings

This table compares Kite Realty Group Trust and Retail Properties of America’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kite Realty Group Trust $354.12 million 4.55 $1.18 million $0.15 128.53
Retail Properties of America $583.14 million 5.09 $166.81 million $0.64 20.44

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

Profitability

This table compares Kite Realty Group Trust and Retail Properties of America’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kite Realty Group Trust 3.60% 0.80% 0.36%
Retail Properties of America 28.84% 7.61% 3.71%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Kite Realty Group Trust and Retail Properties of America, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kite Realty Group Trust 0 3 3 0 2.50
Retail Properties of America 0 2 5 0 2.71

Kite Realty Group Trust presently has a consensus target price of $24.25, indicating a potential upside of 25.78%. Retail Properties of America has a consensus target price of $16.07, indicating a potential upside of 22.87%. Given Kite Realty Group Trust’s higher possible upside, equities research analysts plainly believe Kite Realty Group Trust is more favorable than Retail Properties of America.

Insider and Institutional Ownership

94.3% of Kite Realty Group Trust shares are held by institutional investors. Comparatively, 79.1% of Retail Properties of America shares are held by institutional investors. 1.9% of Kite Realty Group Trust shares are held by insiders. Comparatively, 0.4% of Retail Properties of America shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Kite Realty Group Trust has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, Retail Properties of America has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500.

Dividends

Kite Realty Group Trust pays an annual dividend of $1.21 per share and has a dividend yield of 6.3%. Retail Properties of America pays an annual dividend of $0.66 per share and has a dividend yield of 5.0%. Kite Realty Group Trust pays out 806.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Retail Properties of America pays out 103.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kite Realty Group Trust has increased its dividend for 3 consecutive years. Kite Realty Group Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Retail Properties of America beats Kite Realty Group Trust on 10 of the 17 factors compared between the two stocks.

Kite Realty Group Trust Company Profile

Kite Realty Group Trust is a real estate investment trust. The Company, through its subsidiary, Kite Realty Group, L.P., owns interests in various operating subsidiaries and joint ventures engaged in the ownership, operation, acquisition, development and redevelopment of neighborhood and community shopping centers in selected markets in the United States. As of December 31, 2016, the Company owned interests in 108 operating retail properties totaling approximately 21.4 million square feet of gross leasable area (including approximately 6.3 million square feet of non-owned anchor space) located in 20 states. As of December 31, 2016, the Company had an interest in two development projects under construction. In addition to its development projects, as of December 31, 2016, the Company had nine redevelopment projects. As of December 31, 2016, the Company owned interests in one office operating property and an associated parking garage.

Retail Properties of America Company Profile

Retail Properties of America, Inc. is a real estate investment trust (REIT). The Company owns and operates shopping centers located in the United States. As of December 31, 2016, it owned 156 retail operating properties representing 25,832,000 square feet of gross leasable area (GLA). Its retail operating portfolio includes neighborhood and community centers, power centers, and lifestyle centers and multi-tenant retail-focused mixed-use properties, as well as single-user retail properties. As of December 31, 2016, it had identified 10 target markets, including Dallas, Washington, District of Columbia/Baltimore, New York, Atlanta, Seattle, Chicago, Houston, San Antonio, Phoenix and Austin. Its properties include 23rd Street Plaza, Azalea Square I, Boulevard Plaza, Brown’s Lane, Cranberry Square, Denton Crossing, Dorman Center I & II, Edgemont Town Center, Edwards Multiplex, Green’s Corner, Home Depot Plaza, Lake Mary Pointe, Lincoln Park, University Town Center and Winchester Commons.

Receive News & Ratings for Kite Realty Group Trust Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kite Realty Group Trust and related companies with MarketBeat.com's FREE daily email newsletter.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit