Kite Realty Group Trust (NYSE: KRG) and Pennsylvania Real Estate Investment Trust (NYSE:PEI) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.

Dividends

Kite Realty Group Trust pays an annual dividend of $1.21 per share and has a dividend yield of 6.0%. Pennsylvania Real Estate Investment Trust pays an annual dividend of $0.84 per share and has a dividend yield of 7.5%. Kite Realty Group Trust pays out 864.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pennsylvania Real Estate Investment Trust pays out -64.1% of its earnings in the form of a dividend. Kite Realty Group Trust has raised its dividend for 3 consecutive years and Pennsylvania Real Estate Investment Trust has raised its dividend for 5 consecutive years. Pennsylvania Real Estate Investment Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Kite Realty Group Trust and Pennsylvania Real Estate Investment Trust’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Kite Realty Group Trust $360.76 million 4.71 $224.39 million $0.14 145.14
Pennsylvania Real Estate Investment Trust $392.34 million 2.00 $217.76 million ($1.31) -8.56

Kite Realty Group Trust has higher revenue, but lower earnings than Pennsylvania Real Estate Investment Trust. Pennsylvania Real Estate Investment Trust is trading at a lower price-to-earnings ratio than Kite Realty Group Trust, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations for Kite Realty Group Trust and Pennsylvania Real Estate Investment Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kite Realty Group Trust 0 3 3 1 2.71
Pennsylvania Real Estate Investment Trust 1 6 0 0 1.86

Kite Realty Group Trust currently has a consensus price target of $26.00, suggesting a potential upside of 27.95%. Pennsylvania Real Estate Investment Trust has a consensus price target of $14.08, suggesting a potential upside of 25.52%. Given Kite Realty Group Trust’s stronger consensus rating and higher probable upside, research analysts plainly believe Kite Realty Group Trust is more favorable than Pennsylvania Real Estate Investment Trust.

Institutional & Insider Ownership

95.7% of Kite Realty Group Trust shares are held by institutional investors. Comparatively, 99.0% of Pennsylvania Real Estate Investment Trust shares are held by institutional investors. 1.9% of Kite Realty Group Trust shares are held by insiders. Comparatively, 4.4% of Pennsylvania Real Estate Investment Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Kite Realty Group Trust and Pennsylvania Real Estate Investment Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kite Realty Group Trust 3.29% 0.73% 0.33%
Pennsylvania Real Estate Investment Trust -18.13% -9.06% -2.66%

Volatility and Risk

Kite Realty Group Trust has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, Pennsylvania Real Estate Investment Trust has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500.

Summary

Kite Realty Group Trust beats Pennsylvania Real Estate Investment Trust on 11 of the 18 factors compared between the two stocks.

About Kite Realty Group Trust

Kite Realty Group Trust is a real estate investment trust. The Company, through its subsidiary, Kite Realty Group, L.P., owns interests in various operating subsidiaries and joint ventures engaged in the ownership, operation, acquisition, development and redevelopment of neighborhood and community shopping centers in selected markets in the United States. As of December 31, 2016, the Company owned interests in 108 operating retail properties totaling approximately 21.4 million square feet of gross leasable area (including approximately 6.3 million square feet of non-owned anchor space) located in 20 states. As of December 31, 2016, the Company had an interest in two development projects under construction. In addition to its development projects, as of December 31, 2016, the Company had nine redevelopment projects. As of December 31, 2016, the Company owned interests in one office operating property and an associated parking garage.

About Pennsylvania Real Estate Investment Trust

Pennsylvania Real Estate Investment Trust (PREIT) is a self-managed and self-administered real estate investment trust (REIT). The Company’s primary business is owning and operating retail shopping malls, which it does primarily through operating partnership, PREIT Associates, L.P. (PREIT Associates). The Company is engaged in the ownership, management, leasing, acquisition, redevelopment, development and disposition of shopping malls. The Company has a primary investment focus on retail shopping malls located in the eastern half of the United States, primarily in the Mid-Atlantic region. As of December 31, 2016, the Company owned interests in 30 retail properties, of which 26 are operating properties and four are development or redevelopment properties. As of December 31, 2016, the Company’s 26 operating properties included 22 shopping malls and four other retail properties, had a total of 21.7 million square feet and were located in nine states.

Receive News & Ratings for Kite Realty Group Trust Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kite Realty Group Trust and related companies with MarketBeat.com's FREE daily email newsletter.