Analyzing DDR Corp. (DDR) and Weingarten Realty Investors (WRI)
DDR Corp. (NYSE: DDR) and Weingarten Realty Investors (NYSE:WRI) are both mid-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.
Institutional and Insider Ownership
80.0% of DDR Corp. shares are owned by institutional investors. Comparatively, 80.3% of Weingarten Realty Investors shares are owned by institutional investors. 16.1% of DDR Corp. shares are owned by insiders. Comparatively, 7.3% of Weingarten Realty Investors shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of recent ratings for DDR Corp. and Weingarten Realty Investors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Weingarten Realty Investors||1||2||1||0||2.00|
DDR Corp. presently has a consensus price target of $13.05, suggesting a potential upside of 47.91%. Weingarten Realty Investors has a consensus price target of $33.50, suggesting a potential upside of 3.01%. Given DDR Corp.’s stronger consensus rating and higher possible upside, analysts clearly believe DDR Corp. is more favorable than Weingarten Realty Investors.
Valuation and Earnings
This table compares DDR Corp. and Weingarten Realty Investors’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|DDR Corp.||$963.85 million||3.36||$622.40 million||($0.20)||-44.10|
|Weingarten Realty Investors||$571.15 million||7.31||$367.56 million||$1.47||22.12|
DDR Corp. has higher revenue and earnings than Weingarten Realty Investors. DDR Corp. is trading at a lower price-to-earnings ratio than Weingarten Realty Investors, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
DDR Corp. has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, Weingarten Realty Investors has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.
This table compares DDR Corp. and Weingarten Realty Investors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Weingarten Realty Investors||33.57%||11.03%||4.36%|
DDR Corp. pays an annual dividend of $0.76 per share and has a dividend yield of 8.6%. Weingarten Realty Investors pays an annual dividend of $1.54 per share and has a dividend yield of 4.7%. DDR Corp. pays out -380.0% of its earnings in the form of a dividend. 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. DDR Corp. has raised its dividend for 7 consecutive years and Weingarten Realty Investors has raised its dividend for 6 consecutive years. DDR Corp. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
DDR Corp. beats Weingarten Realty Investors on 10 of the 17 factors compared between the two stocks.
DDR Corp. Company Profile
DDR Corp. is a self-administered and self-managed real estate investment trust. It operates through two segments: shopping centers and loan investments. It is in the business of acquiring, owning, developing, redeveloping, expanding, leasing and managing shopping centers. As of December 31, 2016, it owned and managed approximately 106 million total square feet of gross leasable area (GLA). As of December 31, 2016, the portfolio properties included 319 shopping centers (including 152 centers owned through joint ventures). As of December 31, 2016, the portfolio properties also included over 650 acres of undeveloped land, including parcels located adjacent to certain of the shopping centers. As of December 31, 2016, the portfolio properties aggregated to 75.8 million square feet of Company-owned GLA located in 35 states, plus Puerto Rico. These centers are in the Southeast and Midwest, with significant concentrations in Florida, Georgia, Ohio and North Carolina, as well as Puerto Rico.
Weingarten Realty Investors Company Profile
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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