Retail Opportunity Investments Corp. (NASDAQ: ROIC) and General Growth Properties (NYSE:GGP) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, dividends, risk and profitability.

Risk and Volatility

Retail Opportunity Investments Corp. has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, General Growth Properties has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.

Profitability

This table compares Retail Opportunity Investments Corp. and General Growth Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Retail Opportunity Investments Corp. 13.92% 2.71% 1.31%
General Growth Properties 50.01% 13.57% 5.07%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Retail Opportunity Investments Corp. and General Growth Properties, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Retail Opportunity Investments Corp. 0 4 3 0 2.43
General Growth Properties 1 5 4 0 2.30

Retail Opportunity Investments Corp. presently has a consensus target price of $22.33, indicating a potential upside of 16.32%. General Growth Properties has a consensus target price of $24.80, indicating a potential upside of 17.09%. Given General Growth Properties’ higher possible upside, analysts plainly believe General Growth Properties is more favorable than Retail Opportunity Investments Corp..

Insider & Institutional Ownership

94.9% of Retail Opportunity Investments Corp. shares are owned by institutional investors. Comparatively, 95.2% of General Growth Properties shares are owned by institutional investors. 2.2% of Retail Opportunity Investments Corp. shares are owned by company insiders. Comparatively, 35.6% of General Growth Properties 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.

Dividends

Retail Opportunity Investments Corp. pays an annual dividend of $0.75 per share and has a dividend yield of 3.9%. General Growth Properties pays an annual dividend of $0.88 per share and has a dividend yield of 4.2%. Retail Opportunity Investments Corp. pays out 227.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. General Growth Properties pays out 73.9% of its earnings in the form of a dividend. Retail Opportunity Investments Corp. has raised its dividend for 5 consecutive years. General Growth Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Retail Opportunity Investments Corp. and General Growth Properties’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Retail Opportunity Investments Corp. N/A N/A N/A $0.33 58.18
General Growth Properties $2.51 billion 7.43 $1.76 billion $1.19 17.80

General Growth Properties has higher revenue and earnings than Retail Opportunity Investments Corp.. General Growth Properties is trading at a lower price-to-earnings ratio than Retail Opportunity Investments Corp., indicating that it is currently the more affordable of the two stocks.

Summary

General Growth Properties beats Retail Opportunity Investments Corp. on 12 of the 14 factors compared between the two stocks.

About Retail Opportunity Investments Corp.

Retail Opportunity Investments Corp. (ROIC) is a fully integrated, self-managed real estate investment trust (REIT). The Company specializes in the acquisition, ownership and management of necessity-based community and neighborhood shopping centers on the west coast of the United States, anchored by supermarkets and drugstores. Retail Opportunity Investments Partnership, LP is the operating partnership of the Company. The Operating Partnership holds substantially all the assets of the Company and directly or indirectly holds the ownership interests in the Company’s real estate ventures. The Operating Partnership conducts the operations of the Company’s business. As of December 31, 2016, the Company’s portfolio consisted of 82 properties (81 retail and one office) totaling approximately 9.4 million square feet of gross leasable area (GLA). As of December 31, 2016, the Company’s portfolio was approximately 97.6% leased.

About General Growth Properties

GGP Inc. (GGP), formerly General Growth Properties, Inc., is a self-administered and self-managed real estate investment trust (REIT). The Company operates as a holding company, which is engaged in the operation, development and management of retail and other rental properties, primarily regional malls. As of December 31, 2016, the Company owned, either entirely or with joint venture partners, 127 retail properties located throughout the United States comprising approximately 125 million square feet of gross leasable area (GLA). As of December 31, 2016, the Company’s retail properties included 200 Lafayette, The Shoppes at Buckland Hills, Northridge Fashion Center, Brass Mill Center, Jordan Creek Town Center, Westroads Mall and Stonestown Galleria. The Company’s business is conducted through GGP Operating Partnership, LP (GGPOP), GGP Nimbus, LP (GGPN) and GGP Limited Partnership (GGPLP, and together with GGPN and GGPOP, the Operating Partnerships), subsidiaries of GGP.

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