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.
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.
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.
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%|
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.
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.
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