Financial Review: Equity One (NYSE:EQY) vs. Lexington Realty Trust (LXP)
Equity One (NYSE: EQY) and Lexington Realty Trust (NYSE:LXP) are both financials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitabiliy, analyst recommendations, dividends, valuation, risk, institutional ownership and earnings.
This is a summary of current recommendations and price targets for Equity One and Lexington Realty Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lexington Realty Trust||1||4||1||0||2.00|
Equity One currently has a consensus price target of $31.00, indicating a potential upside of 0.49%. Lexington Realty Trust has a consensus price target of $10.50, indicating a potential upside of 2.74%. Given Lexington Realty Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Lexington Realty Trust is more favorable than Equity One.
Valuation & Earnings
This table compares Equity One and Lexington Realty Trust’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Lexington Realty Trust||$414.32 million||5.93||$339.11 million||$0.32||31.94|
Lexington Realty Trust has higher revenue and earnings than Equity One. Lexington Realty Trust is trading at a lower price-to-earnings ratio than Equity One, indicating that it is currently the more affordable of the two stocks.
This table compares Equity One and Lexington Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Lexington Realty Trust||19.61%||5.97%||2.27%|
Risk & Volatility
Equity One has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, Lexington Realty Trust has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.
Institutional & Insider Ownership
64.0% of Equity One shares are held by institutional investors. Comparatively, 72.7% of Lexington Realty Trust shares are held by institutional investors. 35.9% of Equity One shares are held by insiders. Comparatively, 3.1% of Lexington Realty Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Equity One pays an annual dividend of $0.88 per share and has a dividend yield of 2.9%. Lexington Realty Trust pays an annual dividend of $0.70 per share and has a dividend yield of 6.8%. Equity One pays out 179.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Lexington Realty Trust pays out 218.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Lexington Realty Trust has raised its dividend for 6 consecutive years. Lexington Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Lexington Realty Trust beats Equity One on 11 of the 14 factors compared between the two stocks.
Equity One Company Profile
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.
Lexington Realty Trust Company Profile
Lexington Realty Trust is a real estate investment trust (REIT). The Company owns a portfolio of equity and debt investments in single-tenant commercial properties. As of December 31, 2016, the Company had equity ownership interests in approximately 195 consolidated real estate properties, located in 40 states and containing an aggregate of approximately 43.3 million square feet of space, approximately 96.0% of which was leased. The Company conducts its operations either directly or indirectly through property owner subsidiaries and lender subsidiaries, which are single purpose entities; an operating partnership, Lepercq Corporate Income Fund L.P. (LCIF), in which the Company is the sole unit holder of the general partner and the sole unit holder of the limited partner that holds a majority of the limited partner interests; Lexington Realty Advisors, Inc. (LRA), a subsidiary of the Company, and investments in joint ventures.
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