Wheeler Real Estate Investment Trust (NASDAQ: WHLR) and National Retail Properties (NYSE:NNN) are both financials companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Profitability

This table compares Wheeler Real Estate Investment Trust and National Retail Properties’ 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%
National Retail Properties 44.96% 8.47% 4.08%

Dividends

Wheeler Real Estate Investment Trust pays an annual dividend of $1.36 per share and has a dividend yield of 15.3%. National Retail Properties pays an annual dividend of $1.90 per share and has a dividend yield of 4.5%. Wheeler Real Estate Investment Trust pays out -61.0% of its earnings in the form of a dividend. National Retail Properties pays out 155.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Retail Properties has raised its dividend for 7 consecutive years. Wheeler Real Estate Investment Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

67.0% of Wheeler Real Estate Investment Trust shares are owned by institutional investors. Comparatively, 90.5% of National Retail Properties shares are owned by institutional investors. 5.3% of Wheeler Real Estate Investment Trust shares are owned by insiders. Comparatively, 1.0% of National Retail Properties shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Wheeler Real Estate Investment Trust has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, National Retail Properties has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Wheeler Real Estate Investment Trust and National Retail Properties, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wheeler Real Estate Investment Trust 0 2 4 0 2.67
National Retail Properties 0 0 5 0 3.00

Wheeler Real Estate Investment Trust currently has a consensus target price of $15.40, suggesting a potential upside of 73.03%. National Retail Properties has a consensus target price of $49.00, suggesting a potential upside of 15.13%. Given Wheeler Real Estate Investment Trust’s higher possible upside, research analysts plainly believe Wheeler Real Estate Investment Trust is more favorable than National Retail Properties.

Valuation and Earnings

This table compares Wheeler Real Estate Investment Trust and National Retail Properties’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wheeler Real Estate Investment Trust $44.16 million 1.76 -$11.20 million ($2.23) -3.99
National Retail Properties $533.65 million 12.13 $239.50 million $1.22 34.89

National Retail Properties 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 National Retail Properties, indicating that it is currently the more affordable of the two stocks.

Summary

National Retail Properties beats Wheeler Real Estate Investment Trust on 12 of the 17 factors compared between the two stocks.

Wheeler Real Estate Investment Trust Company Profile

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.

National Retail Properties Company Profile

National Retail Properties, Inc. is a real estate investment trust (REIT). The Company acquires, owns, invests in and develops properties that are leased primarily to retail tenants under long-term net leases and are primarily held for investment. As of December 31, 2016, it owned 2,535 properties with an aggregate gross leasable area of approximately 27,204,000 square feet, located in 48 states. The Company focuses on investing in a range of property and tenant types; leases, mortgages and other types of real estate interests; loans secured by personal property; loans secured by partnership or membership interests in partnerships or limited liability companies, and securities of other REITs, or other issuers, including for the purpose of exercising control over such entities. The Company owns a portfolio of freestanding retail stores across the United States. It owns approximately 2,290 stores, which are leased to over 400 tenants in approximately 40 different retail categories.

Receive News & Ratings for Wheeler Real Estate Investment Trust Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Wheeler Real Estate Investment Trust and related companies with MarketBeat.com's FREE daily email newsletter.