National Retail Properties (NYSE: NNN) is one of 34 publicly-traded companies in the “Retail REITs” industry, but how does it contrast to its rivals? We will compare National Retail Properties to related businesses based on the strength of its earnings, profitability, valuation, risk, analyst recommendations, institutional ownership and dividends.

Dividends

National Retail Properties pays an annual dividend of $1.90 per share and has a dividend yield of 4.5%. 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. As a group, “Retail REITs” companies pay a dividend yield of 4.4% and pay out 144.1% of their earnings in the form of a dividend. National Retail Properties has increased its dividend for 7 consecutive years. National Retail Properties is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Profitability

This table compares National Retail Properties and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Retail Properties 44.17% 8.22% 4.03%
National Retail Properties Competitors 21.35% 5.12% 2.89%

Risk & Volatility

National Retail Properties has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500. Comparatively, National Retail Properties’ rivals have a beta of 0.66, meaning that their average stock price is 34% less volatile than the S&P 500.

Insider and Institutional Ownership

89.4% of National Retail Properties shares are held by institutional investors. Comparatively, 86.2% of shares of all “Retail REITs” companies are held by institutional investors. 1.0% of National Retail Properties shares are held by insiders. Comparatively, 11.3% of shares of all “Retail REITs” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares National Retail Properties and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
National Retail Properties $562.72 million $500.46 million 31.66
National Retail Properties Competitors $727.99 million $483.06 million 28.29

National Retail Properties’ rivals have higher revenue, but lower earnings than National Retail Properties. National Retail Properties is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of current ratings for National Retail Properties and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Retail Properties 0 2 4 0 2.67
National Retail Properties Competitors 261 1212 1184 24 2.36

National Retail Properties presently has a consensus target price of $48.20, suggesting a potential upside of 14.46%. As a group, “Retail REITs” companies have a potential upside of 16.54%. Given National Retail Properties’ rivals higher possible upside, analysts clearly believe National Retail Properties has less favorable growth aspects than its rivals.

Summary

National Retail Properties beats its rivals on 9 of the 15 factors compared.

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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