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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Kite Realty Group Trust and Cedar Realty Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kite Realty Group Trust 0 3 2 1 2.67
Cedar Realty Trust 1 2 3 0 2.33

Kite Realty Group Trust presently has a consensus price target of $25.75, suggesting a potential upside of 31.85%. Cedar Realty Trust has a consensus price target of $5.75, suggesting a potential downside of 4.96%. Given Kite Realty Group Trust’s stronger consensus rating and higher probable upside, equities analysts clearly believe Kite Realty Group Trust is more favorable than Cedar Realty Trust.

Earnings and Valuation

This table compares Kite Realty Group Trust and Cedar Realty Trust’s gross 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 4.61 $1.18 million $0.15 130.20
Cedar Realty Trust $151.09 million 3.66 $8.94 million ($0.07) -86.43

Cedar Realty Trust has lower revenue, but higher earnings than Kite Realty Group Trust. Cedar Realty Trust 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 Cedar Realty Trust’s 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%
Cedar Realty Trust 11.42% 4.18% 1.34%

Risk and Volatility

Kite Realty Group Trust has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Cedar Realty Trust has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Institutional and Insider Ownership

94.4% of Kite Realty Group Trust shares are held by institutional investors. Comparatively, 92.7% of Cedar Realty Trust shares are held by institutional investors. 1.9% of Kite Realty Group Trust shares are held by insiders. Comparatively, 4.5% of Cedar Realty Trust 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.

Dividends

Kite Realty Group Trust pays an annual dividend of $1.21 per share and has a dividend yield of 6.2%. Cedar Realty Trust pays an annual dividend of $0.20 per share and has a dividend yield of 3.3%. 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. Cedar Realty Trust pays out -285.7% of its earnings in the form of a dividend. Cedar Realty Trust has raised its dividend for 3 consecutive years.

Summary

Cedar Realty Trust beats Kite Realty Group Trust on 10 of the 18 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 Cedar Realty Trust

Cedar Realty Trust, Inc. is a real estate investment trust (REIT). The Company focuses on ownership and operation of grocery-anchored shopping centers straddling the Washington District of Columbia (DC) to Boston corridor. As of December 31, 2016, the Company owned and managed a portfolio of 61 operating properties (excluding properties held for sale) totaling approximately 9.1 million square feet of gross leasable area (GLA). The Company focuses its investment activities on grocery-anchored shopping centers. The Company’s properties portfolio comprises 26 properties in Pennsylvania, eight properties in Massachusetts, seven properties in Connecticut, seven properties in Maryland / Washington, D.C, eight properties in Virginia, four properties in New Jersey and one property in New York. The Company’s 106 are going to expire in the year 2017. The Company conducts all of its businesses through the Cedar Realty Trust Partnership L.P. (the Operating Partnership).

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