Wheeler Real Estate Investment Trust (NASDAQ: WHLR) and Ramco-Gershenson Properties Trust (NYSE:RPT) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Risk & Volatility

Wheeler Real Estate Investment Trust has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, Ramco-Gershenson Properties Trust has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.

Profitability

This table compares Wheeler Real Estate Investment Trust and Ramco-Gershenson Properties Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wheeler Real Estate Investment Trust -13.61% -16.99% -1.92%
Ramco-Gershenson Properties Trust 20.75% 6.96% 2.55%

Institutional and Insider Ownership

67.1% of Wheeler Real Estate Investment Trust shares are owned by institutional investors. Comparatively, 98.5% of Ramco-Gershenson Properties Trust shares are owned by institutional investors. 5.3% of Wheeler Real Estate Investment Trust shares are owned by company insiders. Comparatively, 1.6% of Ramco-Gershenson Properties Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Wheeler Real Estate Investment Trust pays an annual dividend of $1.36 per share and has a dividend yield of 12.3%. Ramco-Gershenson Properties Trust pays an annual dividend of $0.88 per share and has a dividend yield of 6.1%. Wheeler Real Estate Investment Trust pays out -67.0% of its earnings in the form of a dividend. Ramco-Gershenson Properties Trust pays out 149.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Wheeler Real Estate Investment Trust has increased its dividend for 4 consecutive years. Wheeler Real Estate Investment Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Wheeler Real Estate Investment Trust and Ramco-Gershenson Properties Trust’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wheeler Real Estate Investment Trust $44.16 million 2.19 -$11.20 million ($2.03) -5.46
Ramco-Gershenson Properties Trust $260.93 million 4.40 $59.66 million $0.59 24.53

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Wheeler Real Estate Investment Trust and Ramco-Gershenson Properties Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wheeler Real Estate Investment Trust 0 2 4 0 2.67
Ramco-Gershenson Properties Trust 1 6 4 0 2.27

Wheeler Real Estate Investment Trust presently has a consensus price target of $15.40, indicating a potential upside of 38.86%. Ramco-Gershenson Properties Trust has a consensus price target of $15.00, indicating a potential upside of 3.66%. Given Wheeler Real Estate Investment Trust’s stronger consensus rating and higher possible upside, research analysts clearly believe Wheeler Real Estate Investment Trust is more favorable than Ramco-Gershenson Properties Trust.

Summary

Ramco-Gershenson Properties Trust beats Wheeler Real Estate Investment Trust on 9 of the 16 factors compared between the two stocks.

About Wheeler Real Estate Investment Trust

Wheeler Real Estate Investment Trust, Inc. is a self-managed commercial real estate investment company. The Company focuses on acquiring and managing retail properties with a primary focus on grocery-anchored centers. As of December 31, 2016, the Company owned a portfolio consisting of 74 properties, including 59 retail shopping centers and five freestanding retail properties totaling 4,906,511 gross leasable square feet of which approximately 94% were leased, one office property, eight undeveloped land parcels totaling approximately 70 acres and one redevelopment project. Its properties are located in Virginia, North Carolina, South Carolina, Florida, Georgia, Kentucky, Oklahoma, Tennessee, Alabama, New Jersey, Pennsylvania and West Virginia. Its properties include Alex City Marketplace, Berkley Shopping Center, Clover Plaza, Darien Shopping Center, Cypress Shopping Center, Harrodsburg Marketplace, LaGrange Marketplace, Riverbridge Shopping Center and Village of Martinsville.

About Ramco-Gershenson Properties Trust

Ramco-Gershenson Properties Trust is an equity real estate investment trust. The Company’s primary business is the ownership, management, redevelopment, development and operation of retail shopping centers. As of December 31, 2016, it owned and managed multi-anchored shopping centers in 12 metropolitan markets in the United States. It conducts its business through its operating partnership, Ramco-Gershenson Properties, L.P. It invests in large, multi-anchored shopping centers that include national chain store tenants and supermarket tenants. National chain anchor tenants in its centers include, among others, Bed Bath and Beyond, Dick’s Sporting Goods, and Home Depot. Supermarket anchor tenants in its centers include, among others, Publix Super Market, Whole Foods, Kroger and Sprouts. Its shopping centers are located in metropolitan markets, such as Metro Detroit, Southeast Florida, Greater Denver, Cincinnati, St. Louis, Jacksonville, Tampa/Lakeland, Milwaukee, Chicago and Atlanta.

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