Critical Analysis: Rouse Properties (RSE) & Kimco Realty Corporation (KIM)
Rouse Properties (NYSE: RSE) and Kimco Realty Corporation (NYSE:KIM) are both financials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.
This is a breakdown of current ratings and recommmendations for Rouse Properties and Kimco Realty Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Kimco Realty Corporation||0||7||7||0||2.50|
Kimco Realty Corporation has a consensus target price of $24.43, suggesting a potential upside of 33.05%. Given Kimco Realty Corporation’s higher possible upside, analysts plainly believe Kimco Realty Corporation is more favorable than Rouse Properties.
Institutional and Insider Ownership
88.7% of Kimco Realty Corporation shares are owned by institutional investors. 2.9% of Kimco Realty Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk & Volatility
Rouse Properties has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Kimco Realty Corporation has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.
Earnings & Valuation
This table compares Rouse Properties and Kimco Realty Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Kimco Realty Corporation||$1.17 billion||6.68||$764.78 million||$0.86||21.35|
Kimco Realty Corporation has higher revenue and earnings than Rouse Properties.
This table compares Rouse Properties and Kimco Realty Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Kimco Realty Corporation||35.51%||7.73%||3.68%|
Kimco Realty Corporation pays an annual dividend of $1.08 per share and has a dividend yield of 5.9%. Rouse Properties does not pay a dividend. Kimco Realty Corporation pays out 125.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rouse Properties has raised its dividend for 4 consecutive years and Kimco Realty Corporation has raised its dividend for 7 consecutive years.
Kimco Realty Corporation beats Rouse Properties on 10 of the 12 factors compared between the two stocks.
About Rouse Properties
Rouse Properties, Inc. is a United States-based real estate investment company. The Company owns and manages regional malls in protected markets or submarkets in the United States. The Company operates through the retail segment, which includes the operation, development and management of regional malls. The Company’s portfolio includes approximately 40 malls and retail centers in over 20 states totaling approximately 24.9 million square feet of retail space. The Company’s properties include Animas Valley Mall; Bayshore Mall; Birchwood Mall; Cache Valley Mall; Chesterfield Towne Center; Chula Vista Center; Colony Square Mall; Fig Garden Village; Grand Traverse Mall; Greenville Mall; Lakeland Square; Lansing Mall; Mall St. Vincent; NewPark Mall; North Plains Mall; Pierre Bossier Mall; Sikes Senter; Silver Lake Mall; Southland Center; Southland Mall; Spring Hill Mall; Valley Hills Mall; Vista Ridge Mall; Washington Park Mall; West Valley Mall; Westwood Mall, and White Mountain Mall.
About Kimco Realty Corporation
Kimco Realty Corporation is a self-administered real estate investment trust. The Company is engaged in the ownership, management, development and operation of open-air shopping centers, which are anchored generally by discount department stores, grocery stores or drugstores. As of June 30, 2017, the Company had interests in 510 shopping center properties, including 84 million square feet of gross leasable area (GLA), located in 32 states, Puerto Rico and Canada. As of March 31, 2017, the Company had 380 other property interests, primarily through the Company’s preferred equity investments and other real estate investments, totaling 5.8 million square feet of GLA.
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