Equity One (EQY) and Federal Realty Investment Trust (FRT) Critical Comparison
Federal Realty Investment Trust (NYSE: FRT) and Equity One (NYSE:EQY) are both mid-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.
Federal Realty Investment Trust pays an annual dividend of $4.00 per share and has a dividend yield of 3.1%. Equity One pays an annual dividend of $0.72 per share and has a dividend yield of 2.3%. Federal Realty Investment Trust pays out 97.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equity One pays out 146.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equity One has raised its dividend for 49 consecutive years. Federal Realty Investment Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a summary of current ratings for Federal Realty Investment Trust and Equity One, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Federal Realty Investment Trust||1||2||8||0||2.64|
Federal Realty Investment Trust presently has a consensus price target of $140.80, indicating a potential upside of 8.07%. Given Federal Realty Investment Trust’s higher possible upside, equities research analysts plainly believe Federal Realty Investment Trust is more favorable than Equity One.
This table compares Federal Realty Investment Trust and Equity One’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Federal Realty Investment Trust||35.50%||13.28%||4.82%|
Valuation & Earnings
This table compares Federal Realty Investment Trust and Equity One’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Federal Realty Investment Trust||$801.59 million||11.79||$249.91 million||$4.10||31.78|
Federal Realty Investment Trust has higher revenue and earnings than Equity One. Federal Realty Investment Trust is trading at a lower price-to-earnings ratio than Equity One, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Federal Realty Investment Trust has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500. Comparatively, Equity One has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.
Institutional and Insider Ownership
94.7% of Federal Realty Investment Trust shares are held by institutional investors. Comparatively, 64.0% of Equity One shares are held by institutional investors. 1.1% of Federal Realty Investment Trust shares are held by company insiders. Comparatively, 35.9% of Equity One shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Federal Realty Investment Trust beats Equity One on 10 of the 13 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.
Equity One Company Profile
Equity One, Inc. is a real estate investment trust (REIT). The Company owns, manages, acquires, develops and redevelops shopping centers and retail properties located in supply constrained suburban and urban communities. As of December 31, 2016, the Company’s portfolio consisted of 122 properties, including 101 retail properties and five non-retail properties totaling approximately 12.8 million square feet of gross leasable area (GLA), 10 development or redevelopment properties with approximately 2.3 million square feet of GLA, and six land parcels. Its retail occupancy excluding developments and redevelopments was 95.8% and included national, regional and local tenants as of December 31, 2016. In addition, the Company had joint venture interests in six retail properties and two office buildings totaling approximately 1.4 million square feet of GLA as of December 31, 2016.
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