Washington Real Estate Investment Trust (NYSE: WRE) and Excel Trust (NYSE:EXL) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Profitability

This table compares Washington Real Estate Investment Trust and Excel Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Washington Real Estate Investment Trust 31.36% 9.34% 4.36%
Excel Trust 9.45% 0.65% 0.88%

Insider and Institutional Ownership

85.0% of Washington Real Estate Investment Trust shares are owned by institutional investors. 0.6% of Washington Real Estate Investment Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Washington Real Estate Investment Trust pays an annual dividend of $1.20 per share and has a dividend yield of 3.7%. Excel Trust does not pay a dividend. Washington Real Estate Investment Trust pays out 90.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Washington Real Estate Investment Trust has increased its dividend for 7 consecutive years.

Earnings and Valuation

This table compares Washington Real Estate Investment Trust and Excel Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Washington Real Estate Investment Trust $317.68 million 7.94 $182.98 million $1.33 24.66
Excel Trust N/A N/A N/A N/A N/A

Washington Real Estate Investment Trust has higher revenue and earnings than Excel Trust.

Analyst Recommendations

This is a breakdown of current ratings for Washington Real Estate Investment Trust and Excel Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Washington Real Estate Investment Trust 0 2 3 0 2.60
Excel Trust 0 0 0 0 N/A

Washington Real Estate Investment Trust currently has a consensus target price of $34.10, indicating a potential upside of 3.96%. Given Washington Real Estate Investment Trust’s higher possible upside, equities analysts clearly believe Washington Real Estate Investment Trust is more favorable than Excel Trust.

Summary

Washington Real Estate Investment Trust beats Excel Trust on 10 of the 11 factors compared between the two stocks.

About Washington Real Estate Investment Trust

Washington Real Estate Investment Trust is a self-administered equity real estate investment trust. The Company’s business consists of the ownership and operation of real property in the greater Washington metro region. The Company owns a diversified portfolio of office buildings, multifamily buildings and retail centers. The Company’s segments include office, multifamily and retail. The Company’s office properties provide office space for various types of businesses and professions. The Company’s multifamily properties provide rental housing for individuals and families throughout the Washington metro region. Its retail properties are typically grocery store anchored neighborhood centers that include other small shop tenants or regional power centers with various junior box tenants. As of April 4, 2017, it owned a diversified portfolio of 50 properties, totaling approximately 6.0 million square feet of commercial space and 4,480 residential units, and land held for development.

About Excel Trust

Excel Trust, Inc. is a real estate investment trust (REIT). The Company is a vertically integrated, self-administered, self-managed real estate firm with the principal objective of acquiring, financing, developing, leasing, owning and managing community and power centers, grocery anchored neighborhood centers and freestanding retail properties. It operates through three segments: retail properties, multi-family properties and office properties. It owns approximately 38 consolidated retail operating properties with a total of approximately 7.2 million square feet of gross leasable area (GLA). The multi-family segment consists of apartment units at one retail property, West Broad Village, which is located in Richmond, Virginia. The office segment consists of two properties, Excel Centre, a portion of which is utilized as its headquarters, and the Promenade Corporate Center. These office properties total approximately 338,339 square feet of GLA.

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