Kite Realty Group Trust (NYSE: KRG) and Regency Centers (NYSE:REG) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.

Analyst Recommendations

This is a summary of recent recommendations for Kite Realty Group Trust and Regency Centers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kite Realty Group Trust 0 4 2 1 2.57
Regency Centers 0 6 3 1 2.50

Kite Realty Group Trust currently has a consensus target price of $26.00, suggesting a potential upside of 37.35%. Regency Centers has a consensus target price of $70.17, suggesting a potential upside of 3.83%. Given Kite Realty Group Trust’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Kite Realty Group Trust is more favorable than Regency Centers.

Institutional and Insider Ownership

94.4% of Kite Realty Group Trust shares are owned by institutional investors. Comparatively, 92.5% of Regency Centers shares are owned by institutional investors. 1.9% of Kite Realty Group Trust shares are owned by insiders. Comparatively, 12.7% of Regency Centers shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Kite Realty Group Trust has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, Regency Centers has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500.

Dividends

Kite Realty Group Trust pays an annual dividend of $1.21 per share and has a dividend yield of 6.4%. Regency Centers pays an annual dividend of $2.12 per share and has a dividend yield of 3.1%. Kite Realty Group Trust pays out 806.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Regency Centers pays out 235.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kite Realty Group Trust has increased its dividend for 3 consecutive years and Regency Centers has increased its dividend for 3 consecutive years.

Earnings & Valuation

This table compares Kite Realty Group Trust and Regency Centers’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kite Realty Group Trust $354.12 million 4.47 $1.18 million $0.15 126.20
Regency Centers $614.37 million 18.71 $164.92 million $0.90 75.09

Regency Centers has higher revenue and earnings than Kite Realty Group Trust. Regency Centers is trading at a lower price-to-earnings ratio than Kite Realty Group Trust, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Kite Realty Group Trust and Regency Centers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kite Realty Group Trust 3.60% 0.80% 0.36%
Regency Centers 17.59% 2.82% 1.65%

Summary

Regency Centers beats Kite Realty Group Trust on 11 of the 16 factors compared between the two stocks.

About Kite Realty Group Trust

Kite Realty Group Trust is a real estate investment trust. The Company, through its subsidiary, Kite Realty Group, L.P., owns interests in various operating subsidiaries and joint ventures engaged in the ownership, operation, acquisition, development and redevelopment of neighborhood and community shopping centers in selected markets in the United States. As of December 31, 2016, the Company owned interests in 108 operating retail properties totaling approximately 21.4 million square feet of gross leasable area (including approximately 6.3 million square feet of non-owned anchor space) located in 20 states. As of December 31, 2016, the Company had an interest in two development projects under construction. In addition to its development projects, as of December 31, 2016, the Company had nine redevelopment projects. As of December 31, 2016, the Company owned interests in one office operating property and an associated parking garage.

About Regency Centers

Regency Centers Corporation is a real estate investment trust (REIT). The Company is the general partner of Regency Centers, L.P. (the Operating Partnership). The Company is engaged in the ownership, management, leasing, acquisition and development of retail shopping centers through the Operating Partnership. The Company’s properties include Palm Valley Marketplace, Shops at Arizona, Amerige Heights Town Center, Clayton Valley Shopping Center, Five Points Shopping Center, French Valley Village Center, Hasley Canyon Village, Pleasant Hill Shopping Center, Snell & Branham Plaza, Applewood Shopping Center, Kent Place, Black Rock, Spring Valley Shopping Center and Pebblebrook Plaza. As of December 31, 2016, the Company owned all of the Preferred Units of the Operating Partnership and approximately 99.9% of the Units in the Operating Partnership. As of December 31, 2016, it owned direct or partial interests in 307 shopping centers.

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