Head-To-Head Comparison: Retail Properties of America (RPAI) and Wheeler Real Estate Investment Trust (WHLR)

Retail Properties of America (NYSE: RPAI) and Wheeler Real Estate Investment Trust (NASDAQ:WHLR) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Risk and Volatility

Retail Properties of America has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500. Comparatively, Wheeler Real Estate Investment Trust has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.

Institutional and Insider Ownership

78.9% of Retail Properties of America shares are owned by institutional investors. Comparatively, 27.5% of Wheeler Real Estate Investment Trust shares are owned by institutional investors. 0.4% of Retail Properties of America shares are owned by insiders. Comparatively, 5.3% of Wheeler Real Estate Investment Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Retail Properties of America and Wheeler Real Estate Investment Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Retail Properties of America 28.84% 7.61% 3.71%
Wheeler Real Estate Investment Trust -13.61% -16.99% -1.92%

Dividends

Retail Properties of America pays an annual dividend of $0.66 per share and has a dividend yield of 5.9%. Wheeler Real Estate Investment Trust pays an annual dividend of $1.36 per share and has a dividend yield of 27.1%. Retail Properties of America pays out 101.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Wheeler Real Estate Investment Trust pays out -67.0% of its earnings in the form of a dividend. Wheeler Real Estate Investment Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Retail Properties of America and Wheeler Real Estate Investment Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Retail Properties of America 0 1 5 0 2.83
Wheeler Real Estate Investment Trust 0 2 4 0 2.67

Retail Properties of America currently has a consensus target price of $16.08, suggesting a potential upside of 43.47%. Wheeler Real Estate Investment Trust has a consensus target price of $14.25, suggesting a potential upside of 184.43%. Given Wheeler Real Estate Investment Trust’s higher possible upside, analysts clearly believe Wheeler Real Estate Investment Trust is more favorable than Retail Properties of America.

Valuation and Earnings

This table compares Retail Properties of America and Wheeler Real Estate Investment Trust’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Retail Properties of America $583.14 million 4.37 $166.81 million $0.65 17.25
Wheeler Real Estate Investment Trust $44.16 million 0.99 -$11.20 million ($2.03) -2.47

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

Summary

Retail Properties of America beats Wheeler Real Estate Investment Trust on 11 of the 16 factors compared between the two stocks.

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.

Wheeler Real Estate Investment Trust Company Profile

Wheeler Real Estate Investment Trust, Inc. is a self-managed commercial real estate investment company. The Company focuses on acquiring and managing retail properties with a primary focus on grocery-anchored centers. As of December 31, 2016, the Company owned a portfolio consisting of 74 properties, including 59 retail shopping centers and five freestanding retail properties totaling 4,906,511 gross leasable square feet of which approximately 94% were leased, one office property, eight undeveloped land parcels totaling approximately 70 acres and one redevelopment project. Its properties are located in Virginia, North Carolina, South Carolina, Florida, Georgia, Kentucky, Oklahoma, Tennessee, Alabama, New Jersey, Pennsylvania and West Virginia. Its properties include Alex City Marketplace, Berkley Shopping Center, Clover Plaza, Darien Shopping Center, Cypress Shopping Center, Harrodsburg Marketplace, LaGrange Marketplace, Riverbridge Shopping Center and Village of Martinsville.

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