Critical Analysis: AmREIT (AMRE) versus Its Rivals

AmREIT (NYSE: AMRE) is one of 32 publicly-traded companies in the “Retail REITs” industry, but how does it contrast to its competitors? We will compare AmREIT to similar businesses based on the strength of its profitability, analyst recommendations, valuation, earnings, risk, institutional ownership and dividends.

Institutional and Insider Ownership

83.7% of shares of all “Retail REITs” companies are held by institutional investors. 9.0% of shares of all “Retail REITs” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares AmREIT and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AmREIT N/A N/A N/A
AmREIT Competitors 20.81% 5.20% 2.70%

Earnings and Valuation

This table compares AmREIT and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
AmREIT N/A N/A 110.63
AmREIT Competitors $725.19 million $230.98 million -75.75

AmREIT’s competitors have higher revenue and earnings than AmREIT. AmREIT is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and target prices for AmREIT and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AmREIT 0 0 0 0 N/A
AmREIT Competitors 153 1080 1164 21 2.44

As a group, “Retail REITs” companies have a potential upside of 9.60%. Given AmREIT’s competitors higher probable upside, analysts clearly believe AmREIT has less favorable growth aspects than its competitors.

Summary

AmREIT competitors beat AmREIT on 7 of the 8 factors compared.

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.

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

Leave a Reply