Cedar Realty Trust (NYSE: CDR) and Washington Prime Group (NYSE:WPG) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.

Risk and Volatility

Cedar Realty Trust has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Washington Prime Group has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Valuation & Earnings

This table compares Cedar Realty Trust and Washington Prime Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cedar Realty Trust $147.44 million 2.90 $81.98 million ($0.06) -86.82
Washington Prime Group $819.27 million 1.90 $487.39 million $0.92 9.12

Washington Prime Group has higher revenue and earnings than Cedar Realty Trust. Cedar Realty Trust is trading at a lower price-to-earnings ratio than Washington Prime Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cedar Realty Trust and Washington Prime Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cedar Realty Trust 6.58% 2.49% 0.77%
Washington Prime Group 22.65% 17.36% 3.73%

Dividends

Cedar Realty Trust pays an annual dividend of $0.20 per share and has a dividend yield of 3.8%. Washington Prime Group pays an annual dividend of $1.00 per share and has a dividend yield of 11.9%. Cedar Realty Trust pays out -333.3% of its earnings in the form of a dividend. 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.

Analyst Ratings

This is a summary of current ratings for Cedar Realty Trust and Washington Prime Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cedar Realty Trust 1 1 4 0 2.50
Washington Prime Group 1 0 0 0 1.00

Cedar Realty Trust currently has a consensus price target of $6.25, suggesting a potential upside of 19.96%. Given Cedar Realty Trust’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Cedar Realty Trust is more favorable than Washington Prime Group.

Institutional & Insider Ownership

92.2% of Cedar Realty Trust shares are held by institutional investors. Comparatively, 92.0% of Washington Prime Group shares are held by institutional investors. 4.5% of Cedar Realty Trust shares are held by insiders. Comparatively, 0.3% of Washington Prime Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Cedar Realty Trust Company Profile

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).

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.

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