American Assets Trust (AAT) versus Liberty Property Trust (LPT) Head-To-Head Review

American Assets Trust (NYSE: AAT) and Liberty Property Trust (NYSE:LPT) are both financials companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.

Dividends

American Assets Trust pays an annual dividend of $1.08 per share and has a dividend yield of 3.0%. Liberty Property Trust pays an annual dividend of $1.60 per share and has a dividend yield of 3.8%. American Assets Trust pays out 161.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Liberty Property Trust pays out 67.5% of its earnings in the form of a dividend. Liberty Property Trust has raised its dividend for 3 consecutive years. Liberty Property Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

American Assets Trust has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, Liberty Property Trust has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Profitability

This table compares American Assets Trust and Liberty Property Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Assets Trust 10.90% 3.97% 1.58%
Liberty Property Trust 47.78% 11.41% 5.69%

Analyst Recommendations

This is a summary of current recommendations for American Assets Trust and Liberty Property Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Assets Trust 0 2 1 0 2.33
Liberty Property Trust 1 5 2 0 2.13

American Assets Trust presently has a consensus price target of $43.67, indicating a potential upside of 19.44%. Liberty Property Trust has a consensus price target of $42.67, indicating a potential upside of 1.88%. Given American Assets Trust’s stronger consensus rating and higher possible upside, research analysts clearly believe American Assets Trust is more favorable than Liberty Property Trust.

Insider and Institutional Ownership

98.2% of American Assets Trust shares are held by institutional investors. Comparatively, 91.3% of Liberty Property Trust shares are held by institutional investors. 34.2% of American Assets Trust shares are held by insiders. Comparatively, 1.5% of Liberty Property Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares American Assets Trust and Liberty Property Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Assets Trust $295.09 million 5.84 $45.63 million $0.67 54.57
Liberty Property Trust $746.71 million 8.27 $356.81 million $2.37 17.67

Liberty Property Trust has higher revenue and earnings than American Assets Trust. Liberty Property Trust is trading at a lower price-to-earnings ratio than American Assets Trust, indicating that it is currently the more affordable of the two stocks.

Summary

Liberty Property Trust beats American Assets Trust on 12 of the 17 factors compared between the two stocks.

About American Assets Trust

American Assets Trust, Inc. is a full service, vertically integrated and self-administered real estate investment trust (REIT). The Company owns, operates, acquires and develops retail, office, multifamily and mixed-use properties in Southern California, Northern California, Oregon, Washington, Texas and Hawaii markets. The Company operates in four business segments: retail, office, multifamily and mixed-use. As of December 31, 2016, the Company’s portfolio consisted of 11 retail shopping centers; seven office properties; a mixed-use property consisting of a 369-room all-suite hotel and a retail shopping center, and five multifamily properties. Additionally, as of December 31, 2016, the Company owned land at four of its properties that it classified as held for development and construction in progress. The Company’s markets include San Diego, the San Francisco Bay Area, Portland, Oregon, Bellevue, Washington and Oahu, Hawaii.

About Liberty Property Trust

Liberty Property Trust (the Trust) is a self-administered and self-managed Maryland real estate investment trust (REIT). The Trust’s assets are owned directly or indirectly, and substantially all of the Trust’s operations are conducted directly or indirectly, by its subsidiary, Liberty Property Limited Partnership (the Operating Partnership). The Company’s segments include Carolinas/Richmond; Chicago/Milwaukee; Florida; Houston; Lehigh/Central PA; Minnesota; Philadelphia; Southeastern PA; United Kingdom, and Other, which includes Arizona; Atlanta; Cincinnati/Columbus/Indianapolis; Dallas; DC Metro; New Jersey; Southern California, and other. The Company owns and operates industrial properties nationally and owns and operates office properties in a focused group of office markets. Additionally, the Company owns certain assets in the United Kingdom. As of December 31, 2016, the Company owned and operated 450 industrial and 55 office properties totaling 86.0 million square feet.

Receive News & Ratings for American Assets Trust Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for American Assets 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