Retail Properties of America (RPAI) and Cedar Realty Trust (CDR) Head-To-Head Contrast
Retail Properties of America (NYSE: RPAI) and Cedar Realty Trust (NYSE:CDR) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
This table compares Retail Properties of America and Cedar Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Retail Properties of America||34.57%||9.20%||4.44%|
|Cedar Realty Trust||6.58%||2.49%||0.77%|
Institutional & Insider Ownership
77.8% of Retail Properties of America shares are held by institutional investors. Comparatively, 92.1% of Cedar Realty Trust shares are held by institutional investors. 0.4% of Retail Properties of America shares are held by insiders. Comparatively, 4.5% of Cedar Realty Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Retail Properties of America and Cedar Realty Trust’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Retail Properties of America||$565.53 million||5.47||$351.03 million||$0.80||16.78|
|Cedar Realty Trust||$147.44 million||2.88||$81.98 million||($0.06)||-85.99|
Retail Properties of America has higher revenue and earnings than Cedar Realty Trust. Cedar Realty 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.
Volatility and Risk
Retail Properties of America has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500. Comparatively, Cedar Realty Trust has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.
Retail Properties of America pays an annual dividend of $0.66 per share and has a dividend yield of 4.9%. Cedar Realty Trust pays an annual dividend of $0.20 per share and has a dividend yield of 3.9%. Retail Properties of America pays out 82.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cedar Realty Trust pays out -333.3% of its earnings in the form of a dividend.
This is a summary of current ratings and price targets for Retail Properties of America and Cedar Realty Trust, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Retail Properties of America||0||3||2||0||2.40|
|Cedar Realty Trust||1||1||4||0||2.50|
Retail Properties of America presently has a consensus price target of $15.90, indicating a potential upside of 18.48%. Cedar Realty Trust has a consensus price target of $6.25, indicating a potential upside of 21.12%. Given Cedar Realty Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Cedar Realty Trust is more favorable than Retail Properties of America.
Retail Properties of America beats Cedar Realty Trust on 9 of the 16 factors compared between the two stocks.
About Retail Properties of America
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.
About Cedar Realty Trust
Cedar Realty Trust, Inc. is a real estate investment trust (REIT). The Company focuses on ownership and operation of grocery-anchored shopping centers straddling the Washington District of Columbia (DC) to Boston corridor. As of December 31, 2016, the Company owned and managed a portfolio of 61 operating properties (excluding properties held for sale) totaling approximately 9.1 million square feet of gross leasable area (GLA). The Company focuses its investment activities on grocery-anchored shopping centers. The Company’s properties portfolio comprises 26 properties in Pennsylvania, eight properties in Massachusetts, seven properties in Connecticut, seven properties in Maryland / Washington, D.C, eight properties in Virginia, four properties in New Jersey and one property in New York. The Company’s 106 are going to expire in the year 2017. The Company conducts all of its businesses through the Cedar Realty Trust Partnership L.P. (the Operating Partnership).
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