Equity One (NYSE: EQY) and Alexandria Real Estate Equities (NYSE:ARE) are both commercial reits – nec companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.
This is a breakdown of current ratings and price targets for Equity One and Alexandria Real Estate Equities, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alexandria Real Estate Equities||0||1||6||0||2.86|
Volatility and Risk
Equity One has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, Alexandria Real Estate Equities has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.
Equity One pays an annual dividend of $0.72 per share and has a dividend yield of 2.3%. Alexandria Real Estate Equities pays an annual dividend of $3.60 per share and has a dividend yield of 2.9%. Equity One pays out 146.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alexandria Real Estate Equities pays out 229.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equity One has raised its dividend for 7 consecutive years.
Earnings & Valuation
This table compares Equity One and Alexandria Real Estate Equities’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alexandria Real Estate Equities||$1.13 billion||11.01||$169.09 million||$1.57||78.13|
Alexandria Real Estate Equities has higher revenue and earnings than Equity One. Equity One is trading at a lower price-to-earnings ratio than Alexandria Real Estate Equities, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
64.0% of Equity One shares are owned by institutional investors. Comparatively, 96.3% of Alexandria Real Estate Equities shares are owned by institutional investors. 35.9% of Equity One shares are owned by company insiders. Comparatively, 1.6% of Alexandria Real Estate Equities shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Equity One and Alexandria Real Estate Equities’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alexandria Real Estate Equities||14.77%||3.08%||1.56%|
Alexandria Real Estate Equities beats Equity One on 8 of the 14 factors compared between the two stocks.
About Equity One
Equity One, Inc. is a real estate investment trust (REIT). The Company owns, manages, acquires, develops and redevelops shopping centers and retail properties located in supply constrained suburban and urban communities. As of December 31, 2016, the Company’s portfolio consisted of 122 properties, including 101 retail properties and five non-retail properties totaling approximately 12.8 million square feet of gross leasable area (GLA), 10 development or redevelopment properties with approximately 2.3 million square feet of GLA, and six land parcels. Its retail occupancy excluding developments and redevelopments was 95.8% and included national, regional and local tenants as of December 31, 2016. In addition, the Company had joint venture interests in six retail properties and two office buildings totaling approximately 1.4 million square feet of GLA as of December 31, 2016.
About Alexandria Real Estate Equities
Alexandria Real Estate Equities, Inc. is a real estate investment (REIT). The Company is engaged in the business of providing space for lease to the life science and technology industries. It focuses on collaborative life science and technology campuses. It develops urban cluster campuses and ecosystems. As of December 31, 2016, the Company had 199 properties in North America. As of December 31, 2016, its asset base in North America consisted of 25.2 million square feet, including 19.9 million rentable square feet/foot (RSF) of operating properties, and development and redevelopment of under construction or pre-construction, as well as 5.3 million square feet of future ground-up development projects. Its properties are located in various areas, including Greater Boston, San Francisco, New York City, San Diego, Seattle, Maryland and Research Triangle Park. Its properties include Alexandria Technology Square, Alexandria Park at 128 and Alexandria Technology Center-Gateway.
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