Regency Centers Corporation (NYSE: REG) and Saul Centers (NYSE:BFS) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, dividends, earnings, profitability and institutional ownership.

Analyst Ratings

This is a summary of current ratings and target prices for Regency Centers Corporation and Saul Centers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Regency Centers Corporation 0 6 4 1 2.55
Saul Centers 0 1 1 0 2.50

Regency Centers Corporation currently has a consensus price target of $71.45, indicating a potential upside of 13.65%. Saul Centers has a consensus price target of $72.00, indicating a potential upside of 13.85%. Given Saul Centers’ higher probable upside, analysts plainly believe Saul Centers is more favorable than Regency Centers Corporation.

Volatility & Risk

Regency Centers Corporation has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Saul Centers has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.

Insider and Institutional Ownership

91.6% of Regency Centers Corporation shares are owned by institutional investors. Comparatively, 45.2% of Saul Centers shares are owned by institutional investors. 12.7% of Regency Centers Corporation shares are owned by insiders. Comparatively, 48.8% of Saul Centers shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Regency Centers Corporation pays an annual dividend of $2.12 per share and has a dividend yield of 3.4%. Saul Centers pays an annual dividend of $2.04 per share and has a dividend yield of 3.2%. Regency Centers Corporation pays out 353.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Saul Centers pays out 129.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Regency Centers Corporation has raised its dividend for 3 consecutive years and Saul Centers has raised its dividend for 3 consecutive years.

Profitability

This table compares Regency Centers Corporation and Saul Centers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Regency Centers Corporation 13.19% 2.20% 1.26%
Saul Centers 21.15% 23.85% 3.42%

Earnings & Valuation

This table compares Regency Centers Corporation and Saul Centers’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Regency Centers Corporation $798.89 million 13.36 $508.87 million $0.60 104.79
Saul Centers $221.81 million 6.22 $144.68 million $1.58 40.03

Regency Centers Corporation has higher revenue and earnings than Saul Centers. Saul Centers is trading at a lower price-to-earnings ratio than Regency Centers Corporation, indicating that it is currently the more affordable of the two stocks.

Summary

Saul Centers beats Regency Centers Corporation on 9 of the 17 factors compared between the two stocks.

About Regency Centers Corporation

Regency Centers Corporation is a real estate investment trust (REIT). The Company is the general partner of Regency Centers, L.P. (the Operating Partnership). The Company is engaged in the ownership, management, leasing, acquisition and development of retail shopping centers through the Operating Partnership. The Company’s properties include Palm Valley Marketplace, Shops at Arizona, Amerige Heights Town Center, Clayton Valley Shopping Center, Five Points Shopping Center, French Valley Village Center, Hasley Canyon Village, Pleasant Hill Shopping Center, Snell & Branham Plaza, Applewood Shopping Center, Kent Place, Black Rock, Spring Valley Shopping Center and Pebblebrook Plaza. As of December 31, 2016, the Company owned all of the Preferred Units of the Operating Partnership and approximately 99.9% of the Units in the Operating Partnership. As of December 31, 2016, it owned direct or partial interests in 307 shopping centers.

About Saul Centers

Saul Centers, Inc. operates as a real estate investment trust. The Company’s principal business activity is the ownership, management and development of income-producing properties. It operates through two segments: Shopping Centers and Mixed-Use Properties. The Company, which conducts all of its activities through its subsidiaries, the Saul Holdings Limited Partnership (Operating Partnership) and Subsidiary Partnerships, engages in the ownership, operation, management, leasing, acquisition, renovation, expansion, development and financing of community and neighborhood shopping centers and mixed-used properties in the Washington, District of Columbia/Baltimore metropolitan area. As of December 31, 2016, it properties (the Current Portfolio Properties) consisted of 49 shopping center properties (the Shopping Centers), six mixed-use properties, which consists of office, retail and multi-family residential uses (the Mixed-Use Properties) and three (non-operating) development properties.

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