Critical Analysis: Curbline Properties (NYSE:CURB) & Macerich (NYSE:MAC)

Macerich (NYSE:MAC) and Curbline Properties (NYSE:CURB) are both mid-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Dividends

Macerich pays an annual dividend of $0.68 per share and has a dividend yield of 3.3%. Curbline Properties pays an annual dividend of $0.64 per share and has a dividend yield of 2.3%. Macerich pays out -88.3% of its earnings in the form of a dividend. Curbline Properties pays out 168.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Macerich is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Macerich and Curbline Properties”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Macerich	$1.01 billion	5.26	-$197.15 million	($0.77)	-26.97
Curbline Properties	$182.89 million	16.25	$39.83 million	$0.38	74.24

Curbline Properties has lower revenue, but higher earnings than Macerich. Macerich is trading at a lower price-to-earnings ratio than Curbline Properties, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Macerich and Curbline Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Macerich	-19.44%	-7.32%	-2.25%
Curbline Properties	21.78%	2.10%	1.76%

Risk and Volatility

Macerich has a beta of 2.16, indicating that its stock price is 116% more volatile than the S&P 500. Comparatively, Curbline Properties has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Macerich and Curbline Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Macerich	3	5	6	0	2.21
Curbline Properties	0	1	7	0	2.88

Macerich currently has a consensus price target of $20.26, suggesting a potential downside of 2.45%. Curbline Properties has a consensus price target of $27.63, suggesting a potential downside of 2.07%. Given Curbline Properties’ stronger consensus rating and higher probable upside, analysts clearly believe Curbline Properties is more favorable than Macerich.

Institutional & Insider Ownership

87.4% of Macerich shares are held by institutional investors. 0.2% of Macerich shares are held by insiders. Comparatively, 8.6% of Curbline Properties shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Curbline Properties beats Macerich on 11 of the 16 factors compared between the two stocks.

About Macerich

Macerich is a fully integrated, self-managed and self-administered real estate investment trust (REIT). As a leading owner, operator and developer of high-quality retail real estate in densely populated and attractive U.S. markets, Macerich’s portfolio is concentrated in California, the Pacific Northwest, Phoenix/Scottsdale, and the Metro New York to Washington, D.C. corridor. Developing and managing properties that serve as community cornerstones, Macerich currently owns 47 million square feet of real estate consisting primarily of interests in 44 regional town centers. Macerich is firmly dedicated to advancing environmental goals, social good and sound corporate governance. A recognized leader in sustainability, Macerich has achieved a #1 Global Real Estate Sustainability Benchmark (GRESB) ranking for the North American retail sector for nine consecutive years (2015-2023).

About Curbline Properties

Curbline Properties Corp. is a real estate investment trust which is an owner and manager of convenience shopping centers positioned on the curbline of well-trafficked intersections and major vehicular corridors in suburban. Curbline Properties Corp. is based in NEW YORK.