Head-To-Head Contrast: Washington Prime Group (WPG) vs. National Retail Properties (NNN)
Washington Prime Group (NYSE: WPG) and National Retail Properties (NYSE:NNN) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.
Insider and Institutional Ownership
92.0% of Washington Prime Group shares are owned by institutional investors. Comparatively, 89.2% of National Retail Properties shares are owned by institutional investors. 0.3% of Washington Prime Group shares are owned by company insiders. Comparatively, 1.0% of National Retail Properties shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Washington Prime Group and National Retail Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Washington Prime Group||22.65%||17.36%||3.73%|
|National Retail Properties||44.17%||8.22%||4.03%|
Washington Prime Group pays an annual dividend of $1.00 per share and has a dividend yield of 12.0%. National Retail Properties pays an annual dividend of $1.90 per share and has a dividend yield of 4.5%. Washington Prime Group pays out 108.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Retail Properties pays out 142.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Retail Properties has increased its dividend for 7 consecutive years. Washington Prime Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk and Volatility
Washington Prime Group has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, National Retail Properties has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500.
Valuation and Earnings
This table compares Washington Prime Group and National Retail Properties’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Washington Prime Group||$819.27 million||1.90||$487.39 million||$0.92||9.09|
|National Retail Properties||$562.72 million||11.31||$500.46 million||$1.33||32.08|
National Retail Properties has higher revenue, but lower earnings than Washington Prime Group. Washington Prime Group is trading at a lower price-to-earnings ratio than National Retail Properties, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for Washington Prime Group and National Retail Properties, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Washington Prime Group||1||0||0||0||1.00|
|National Retail Properties||0||2||3||0||2.60|
National Retail Properties has a consensus price target of $48.50, suggesting a potential upside of 13.69%. Given National Retail Properties’ stronger consensus rating and higher possible upside, analysts plainly believe National Retail Properties is more favorable than Washington Prime Group.
National Retail Properties beats Washington Prime Group on 11 of the 17 factors compared between the two stocks.
Washington Prime Group Company Profile
Washington Prime Group Inc. (WPG Inc.), formerly WP Glimcher Inc., operates as a self-administered and self-managed real estate investment trust (REIT). The Company’s primary business is the ownership, development and management of retail real estate within the United States. The Company owns, develops and manages enclosed retail properties and community centers. As of December 31, 2016, its assets consisted of material interests in 114 shopping centers in the United States, consisting of approximately 63 million square feet of gross leasable area. The Company also owns parcels of land, which can be used for either the development of new shopping centers or the expansion of existing properties. Washington Prime Group, L.P. is the Company’s majority-owned partnership subsidiary that owns, develops and manages, through its affiliates, all of WPG Inc.’s real estate properties and other assets. Its properties include Irving Mall, Lindale Mall, Markland Plaza and Royal Eagle Plaza.
National Retail Properties Company Profile
National Retail Properties, Inc. is a real estate investment trust (REIT). The Company acquires, owns, invests in and develops properties that are leased primarily to retail tenants under long-term net leases and are primarily held for investment. As of December 31, 2016, it owned 2,535 properties with an aggregate gross leasable area of approximately 27,204,000 square feet, located in 48 states. The Company focuses on investing in a range of property and tenant types; leases, mortgages and other types of real estate interests; loans secured by personal property; loans secured by partnership or membership interests in partnerships or limited liability companies, and securities of other REITs, or other issuers, including for the purpose of exercising control over such entities. The Company owns a portfolio of freestanding retail stores across the United States. It owns approximately 2,290 stores, which are leased to over 400 tenants in approximately 40 different retail categories.
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