Kite Realty Group Trust (NYSE: KRG) and Weingarten Realty Investors (NYSE:WRI) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and target prices for Kite Realty Group Trust and Weingarten Realty Investors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kite Realty Group Trust 0 3 3 1 2.71
Weingarten Realty Investors 1 2 1 0 2.00

Kite Realty Group Trust currently has a consensus target price of $26.00, suggesting a potential upside of 28.65%. Weingarten Realty Investors has a consensus target price of $33.50, suggesting a potential upside of 3.84%. Given Kite Realty Group Trust’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Kite Realty Group Trust is more favorable than Weingarten Realty Investors.

Risk and Volatility

Kite Realty Group Trust has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, Weingarten Realty Investors has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500.

Earnings and Valuation

This table compares Kite Realty Group Trust and Weingarten Realty Investors’ gross 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 4.68 $224.39 million $0.14 144.36
Weingarten Realty Investors $571.15 million 7.25 $367.56 million $1.47 21.95

Weingarten Realty Investors has higher revenue and earnings than Kite Realty Group Trust. Weingarten Realty Investors 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.

Dividends

Kite Realty Group Trust pays an annual dividend of $1.21 per share and has a dividend yield of 6.0%. Weingarten Realty Investors pays an annual dividend of $1.54 per share and has a dividend yield of 4.8%. 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. Weingarten Realty Investors pays out 104.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kite Realty Group Trust has increased its dividend for 7 consecutive years and Weingarten Realty Investors has increased its dividend for 3 consecutive years. Kite Realty Group Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Kite Realty Group Trust and Weingarten Realty Investors’ 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%
Weingarten Realty Investors 33.57% 11.03% 4.36%

Insider and Institutional Ownership

95.7% of Kite Realty Group Trust shares are owned by institutional investors. Comparatively, 80.3% of Weingarten Realty Investors shares are owned by institutional investors. 1.9% of Kite Realty Group Trust shares are owned by company insiders. Comparatively, 7.3% of Weingarten Realty Investors shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Weingarten Realty Investors beats Kite Realty Group Trust on 10 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 Weingarten Realty Investors

Weingarten Realty Investors is a real estate investment trust (REIT). The Company’s primary business is leasing space to tenants in the shopping centers it owns or leases. The Company also provides property management services. The Company is in the business of owning, managing and developing retail shopping centers. As of December 31, 2016, the Company had owned or operated under long-term leases, either directly or through its interest in real estate joint ventures or partnerships, a total of 220 centers, primarily neighborhood and community shopping centers, which were located in 18 states spanning the country from coast to coast with approximately 44.7 million square feet of gross leasable area. Its centers are located principally in the South, West Coast and Southeast Coast of the United States with concentrations in Arizona, California, Florida and Texas. It also owned interests in 28 parcels of land that totaled approximately 19.8 million square feet, as of December 31, 2016.

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