Analyzing Empire State Realty Trust (ESRT) and Retail Properties of America (RPAI)

Empire State Realty Trust (NYSE:ESRT) and Retail Properties of America (NYSE:RPAI) are both mid-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.

Earnings & Valuation

This table compares Empire State Realty Trust and Retail Properties of America’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Empire State Realty Trust $712.47 million 3.96 $63.58 million $0.96 16.86
Retail Properties of America $538.14 million 5.04 $251.49 million $1.06 11.88

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

Profitability

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

Net Margins Return on Equity Return on Assets
Empire State Realty Trust 12.39% 4.48% 2.17%
Retail Properties of America 35.82% 9.39% 4.68%

Dividends

Empire State Realty Trust pays an annual dividend of $0.42 per share and has a dividend yield of 2.6%. Retail Properties of America pays an annual dividend of $0.66 per share and has a dividend yield of 5.2%. Empire State Realty Trust pays out 43.8% of its earnings in the form of a dividend. Retail Properties of America pays out 62.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Empire State Realty Trust has raised its dividend for 2 consecutive years.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Empire State Realty Trust and Retail Properties of America, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Empire State Realty Trust 0 4 1 0 2.20
Retail Properties of America 0 2 3 0 2.60

Empire State Realty Trust presently has a consensus price target of $20.50, suggesting a potential upside of 26.62%. Retail Properties of America has a consensus price target of $14.40, suggesting a potential upside of 14.38%. Given Empire State Realty Trust’s higher probable upside, research analysts plainly believe Empire State Realty Trust is more favorable than Retail Properties of America.

Volatility & Risk

Empire State Realty Trust has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Retail Properties of America has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500.

Institutional & Insider Ownership

71.4% of Empire State Realty Trust shares are held by institutional investors. Comparatively, 85.2% of Retail Properties of America shares are held by institutional investors. 11.5% of Empire State Realty Trust shares are held by insiders. Comparatively, 0.5% of Retail Properties of America shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

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

About Empire State Realty Trust

Empire State Realty Trust, Inc. (NYSE: ESRT), a leading real estate investment trust (REIT), owns, manages, operates, acquires and repositions office and retail properties in Manhattan and the greater New York metropolitan area, including the Empire State Building, the world's most famous building. Headquartered in New York, New York, the Company's office and retail portfolio covers 10.1 million rentable square feet, as of September 30, 2018, consisting of 9.4 million rentable square feet in 14 office properties, including nine in Manhattan, three in Fairfield County, Connecticut, and two in Westchester County, New York; and approximately 700,000 rentable square feet in the retail portfolio.

About Retail Properties of America

Retail Properties of America, Inc. is a REIT that owns and operates high quality, strategically located open-air shopping centers, including properties with a mixed-use component. As of September 30, 2018, the Company owned 105 retail operating properties in the United States representing 19.5 million square feet. The Company is publicly traded on the New York Stock Exchange under the ticker symbol RPAI.

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