Financial Review: Inland Real Estate (IRC) vs. Cousins Properties (CUZ)

Cousins Properties (NYSE: CUZ) and Inland Real Estate (NYSE:IRC) are both financials companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, risk, earnings, analyst recommendations, institutional ownership and valuation.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Cousins Properties and Inland Real Estate, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cousins Properties 0 1 3 0 2.75
Inland Real Estate 0 0 0 0 N/A

Cousins Properties presently has a consensus target price of $10.13, indicating a potential upside of 12.88%. Given Cousins Properties’ higher possible upside, analysts plainly believe Cousins Properties is more favorable than Inland Real Estate.

Earnings and Valuation

This table compares Cousins Properties and Inland Real Estate’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cousins Properties $259.21 million 14.53 $79.10 million $0.58 15.47
Inland Real Estate N/A N/A N/A $0.10 106.10

Cousins Properties has higher revenue and earnings than Inland Real Estate. Cousins Properties is trading at a lower price-to-earnings ratio than Inland Real Estate, indicating that it is currently the more affordable of the two stocks.

Dividends

Cousins Properties pays an annual dividend of $0.24 per share and has a dividend yield of 2.7%. Inland Real Estate pays an annual dividend of $0.57 per share and has a dividend yield of 5.4%. Cousins Properties pays out 41.4% of its earnings in the form of a dividend. Inland Real Estate pays out 570.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cousins Properties has raised its dividend for 3 consecutive years.

Profitability

This table compares Cousins Properties and Inland Real Estate’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cousins Properties 48.08% 8.39% 5.42%
Inland Real Estate -0.49% -2.46% -0.06%

Summary

Cousins Properties beats Inland Real Estate on 9 of the 10 factors compared between the two stocks.

About Cousins Properties

Cousins Properties Incorporated is a self-administered and self-managed real estate investment trust. The Company’s segments include Office, Mixed-Use, Other, Atlanta, Austin, Charlotte, Orlando, Tampa, Phoenix and Other. It develops, acquires, leases, manages and owns primarily Class A office properties and opportunistic mixed-use developments in Sunbelt markets with a focus on Georgia, Texas and North Carolina. It manages a 15.8 million-square-foot trophy office portfolio in the Sun Belt markets of Atlanta, Austin, Charlotte, Orlando, Tampa and Tempe. As of December 31, 2016, its portfolio of real estate assets consisted of interests in 16.2 million square feet of office space and 786,000 square feet of mixed-use space. The Company, through Cousins TRS Services LLC, owns and manages its own real estate portfolio and performs certain real estate related services for other parties. Its properties include Colorado Tower, 816 Congress, Promenade and Gateway Village.

About Inland Real Estate

IRC Retail Centers, Inc., formerly Inland Real Estate Corporation, is a real estate investment trust (REIT). The Company owns, operates and develops open-air neighborhood, community and power shopping centers and single tenant retail properties located throughout the Central and Southeastern United States. Through its subsidiaries, Inland Commercial Property Management, Inc. (ICPM) and Inland TRS Property Management, Inc., the Company manages all properties it owns interests in and properties for certain third parties and related parties. The Company owns investment properties located in the States of Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Minnesota, Missouri, Nebraska, New York, North Carolina, Ohio, Oklahoma, South Carolina, Texas, Virginia and Wisconsin. The Company owns interests in approximately 130 investment properties, including those owned through its unconsolidated joint ventures.

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