WP Carey (NYSE:WPC – Get Rating) and Kite Realty Group Trust (NYSE:KRG – Get Rating) are both finance companies, but which company is better? We’ll compare the two companies based on earnings strength, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.
Valuation and benefits
This chart compares the revenue, earnings per share (EPS), and valuation of WP Carey and Kite Realty Group Trust.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|WP Carey||$1.33 billion||11.27||$409.99 million||$2.76||28.19|
|Kite Real Estate Group Trust||$373.32 million||12.70||-80.81 million dollars||($0.68)||-31.84|
WP Carey has higher revenue and profit than Kite Realty Group Trust. Kite Realty Group Trust trades at a lower price-to-earnings ratio than WP Carey, indicating that it is currently the more affordable of the two stocks.
WP Carey pays an annual dividend of $4.23 per share and has a dividend yield of 5.4%. Kite Realty Group Trust pays an annual dividend of $0.80 per share and has a dividend yield of 3.7%. WP Carey pays 153.3% of its earnings as a dividend, suggesting it may not have enough earnings to cover its dividend payment in the future. Kite Realty Group Trust pays -117.6% of its earnings as a dividend. WP Carey has increased its dividend for 26 consecutive years and Kite Realty Group Trust has increased its dividend for 2 consecutive years. WP Carey is clearly the better dividend-paying stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
58.9% of WP Carey shares are held by institutional investors. By comparison, 90.4% of shares in Kite Realty Group Trust are held by institutional investors. 1.1% of WP Carey shares are held by insiders of the company. By comparison, 1.3% of shares in Kite Realty Group Trust are held by insiders of the company. Strong institutional ownership indicates that endowments, hedge funds, and large fund managers believe a stock will outperform the market over the long term.
Volatility and risk
WP Carey has a beta of 0.7, suggesting its stock price is 30% less volatile than the S&P 500. By comparison, Kite Realty Group Trust has a beta of 1.25, suggesting its stock price its stock is 25% more volatile than the S&P 500.
This is a summary of current recommendations for WP Carey and Kite Realty Group Trust, as provided by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Kite Real Estate Group Trust||0||0||5||1||3.17|
WP Carey currently has a consensus price target of $89.00, indicating a potential upside of 14.38%. Kite Realty Group Trust has a consensus price target of $25.83, indicating a potential upside of 19.32%. Given Kite Realty Group Trust’s stronger consensus rating and possible higher upside, analysts clearly believe Kite Realty Group Trust is more favorable than WP Carey.
This table compares the net margins, return on equity and return on assets of WP Carey and Kite Realty Group Trust.
|Net margins||Return on equity||return on assets|
|Kite Real Estate Group Trust||-24.52%||-4.77%||-2.37%|
WP Carey beats Kite Realty Group Trust on 9 out of 17 factors compared between the two stocks.
WP Carey Company Profile (Get a rating)
WP Carey ranks among the largest net-lease REITs with an enterprise value of approximately $18 billion and a diverse portfolio of operationally critical commercial real estate that includes 1,215 net-lease properties spanning approximately $142 million of square feet as of September 30, 2020. For nearly five decades, the company has invested in high-quality single-tenant industrial, warehouse, office, retail and self-storage properties making subject to long-term net leases with integrated rent indexations. Its portfolio is located primarily in the United States and Northern and Western Europe and is well diversified by tenant, property type, geographic location and tenant industry.
Company Profile Kite Realty Group Trust (Get a rating)
Kite Realty Group Trust is a vertically integrated, full-service real estate investment trust (REIT) that provides communities with convenient and beneficial shopping experiences. We connect consumers to retailers in in-demand markets through our portfolio of neighborhood, community and lifestyle centers. Through our expertise in operations, development and redevelopment, we continually optimize our portfolio to maximize value and return for our shareholders.
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