Federal Realty Investment Trust (NYSE: FRT) and Kilroy Realty Corporation (NYSE:KRC) are both mid-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Insider & Institutional Ownership

93.5% of Federal Realty Investment Trust shares are held by institutional investors. Comparatively, 99.8% of Kilroy Realty Corporation shares are held by institutional investors. 1.1% of Federal Realty Investment Trust shares are held by insiders. Comparatively, 2.3% of Kilroy Realty Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Federal Realty Investment Trust has a beta of 0.31, meaning that its stock price is 69% less volatile than the S&P 500. Comparatively, Kilroy Realty Corporation has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Federal Realty Investment Trust and Kilroy Realty Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Federal Realty Investment Trust 1 2 7 0 2.60
Kilroy Realty Corporation 0 5 4 0 2.44

Federal Realty Investment Trust currently has a consensus target price of $140.25, suggesting a potential upside of 15.48%. Kilroy Realty Corporation has a consensus target price of $77.50, suggesting a potential upside of 9.80%. Given Federal Realty Investment Trust’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Federal Realty Investment Trust is more favorable than Kilroy Realty Corporation.

Dividends

Federal Realty Investment Trust pays an annual dividend of $4.00 per share and has a dividend yield of 3.3%. Kilroy Realty Corporation pays an annual dividend of $1.70 per share and has a dividend yield of 2.4%. Federal Realty Investment Trust pays out 115.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kilroy Realty Corporation pays out 111.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kilroy Realty Corporation has increased its dividend for 49 consecutive years.

Profitability

This table compares Federal Realty Investment Trust and Kilroy Realty Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Federal Realty Investment Trust 30.40% 10.91% 4.05%
Kilroy Realty Corporation 23.77% 4.44% 2.45%

Valuation and Earnings

This table compares Federal Realty Investment Trust and Kilroy Realty Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Federal Realty Investment Trust $820.60 million 10.69 $526.36 million $3.45 35.20
Kilroy Realty Corporation $691.90 million 10.04 $400.80 million $1.52 46.43

Federal Realty Investment Trust has higher revenue and earnings than Kilroy Realty Corporation. Federal Realty Investment Trust is trading at a lower price-to-earnings ratio than Kilroy Realty Corporation, indicating that it is currently the more affordable of the two stocks.

Summary

Federal Realty Investment Trust beats Kilroy Realty Corporation on 12 of the 17 factors compared between the two stocks.

Federal Realty Investment Trust Company Profile

Federal Realty Investment Trust is an equity real estate investment trust (REIT). The Company specializes in the ownership, management and redevelopment of retail and mixed-use properties located primarily in affluent communities in selected metropolitan markets in the Northeast and Mid-Atlantic regions of the United States, as well as in California and South Florida. As of December 31, 2016, the Company owned or had an interest in community and neighborhood shopping centers and mixed-use properties, which operated as 96 retail real estate projects and included approximately 22.6 million square feet. As of December 31, 2016, its 96 retail shopping center and mixed-use properties were located in 12 states and the District of Columbia. As of December 31, 2016, there were approximately 2,900 leases with tenants providing a range of retail products and services. These tenants range from sole proprietorships to national retailers, or corporate group of tenants.

Kilroy Realty Corporation Company Profile

Kilroy Realty Corporation is a real estate investment trust (REIT). The Company operates through the office properties segment. It operates in office and mixed-use submarkets along the West Coast. It owns, develops, acquires and manages real estate assets, consisting primarily of Class A properties in the coastal regions of Los Angeles, Orange County, San Diego County, the San Francisco Bay Area and Greater Seattle. It owns its interests in all of its real estate assets through Kilroy Realty, L.P. (Operating Partnership) and the Kilroy Realty Finance Partnership, L.P. (Finance Partnership). Its stabilized portfolio includes all of its properties with the exception of development and redevelopment properties under construction or committed for construction, lease-up properties, real estate assets held for sale and undeveloped land. As of December 31, 2016, its stabilized portfolio of operating properties included 108 stabilized office properties and a stabilized residential property.

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