AmREIT (NYSE: AMRE) and Urban Edge Properties (NYSE:UE) are both financials companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.

Profitability

This table compares AmREIT and Urban Edge Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AmREIT N/A N/A N/A
Urban Edge Properties 25.53% 13.43% 4.35%

Earnings and Valuation

This table compares AmREIT and Urban Edge Properties’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AmREIT N/A N/A N/A $0.24 110.63
Urban Edge Properties $325.98 million 8.72 $90.81 million $0.97 25.73

Urban Edge Properties has higher revenue and earnings than AmREIT. Urban Edge Properties is trading at a lower price-to-earnings ratio than AmREIT, indicating that it is currently the more affordable of the two stocks.

Dividends

Urban Edge Properties pays an annual dividend of $0.88 per share and has a dividend yield of 3.5%. AmREIT does not pay a dividend. Urban Edge Properties pays out 90.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AmREIT has increased its dividend for 2 consecutive years.

Institutional & Insider Ownership

89.7% of Urban Edge Properties shares are held by institutional investors. 4.7% of Urban Edge Properties shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for AmREIT and Urban Edge Properties, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AmREIT 0 0 0 0 N/A
Urban Edge Properties 1 1 0 0 1.50

Urban Edge Properties has a consensus target price of $25.00, indicating a potential upside of 0.16%. Given Urban Edge Properties’ higher possible upside, analysts plainly believe Urban Edge Properties is more favorable than AmREIT.

Summary

Urban Edge Properties beats AmREIT on 9 of the 12 factors compared between the two stocks.

About AmREIT

AmREIT, Inc. (AmREIT) is a full service, vertically integrated and self-administered real estate investment trust (REIT) that owns, operates, acquires and selectively develops and redevelops primarily neighborhood and community shopping centers located in high-traffic, densely populated, affluent areas with high barriers to entry. The Company’s shopping centers are anchored by national and local retailers, including supermarket chains, drug stores and other necessity-based retailers. In June 2013, AmREIT Inc announced that it has completed the acquisition of Fountain Oaks Shopping Center, a 160,600 square foot Kroger-anchored shopping center in the north Buckhead submarket of Atlanta, Georgia. Effective September 24, 2013, AmREIT Inc, through its AmREIT Realty Investment Corp subsidiary, acquired Woodlake Square Shopping Center, an owner and operator of shopping centers. In August 2014, AmREIT Inc completed the acquisition of Tuxedo Festival Shopping Center.

About Urban Edge Properties

Urban Edge Properties is a real estate investment trust. The Company is focused on managing, developing, redeveloping and acquiring retail real estate in urban communities, in the New York metropolitan region. Urban Edge Properties LP (UELP or the Operating Partnership) serves as its partnership subsidiary and owns, through affiliates, all of its real estate properties and other assets. As of December 31, 2016, its portfolio consisted of 79 shopping centers, three malls and a warehouse park adjacent to one of its centers totaling 14.8 million square feet. As of December 31, 2016, it leased 19 properties under ground and/or building leases. As of December 31, 2016, it had approximately 1,200 leases. Its shopping centers and malls are located at California, Connecticut, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, South Carolina, Virginia and Puerto Rico. Its shopping centers and malls include Signal Hill, Vallejo, Walnut Creek, Newington and others.

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