W.P. Carey (NYSE:WPC – Get Free Report) and Stag Industrial (NYSE:STAG – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.
Profitability
This table compares W.P. Carey and Stag Industrial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| W.P. Carey | 29.35% | 6.29% | 2.86% |
| Stag Industrial | 28.25% | 6.80% | 3.47% |
Dividends
W.P. Carey pays an annual dividend of $3.72 per share and has a dividend yield of 4.9%. Stag Industrial pays an annual dividend of $1.55 per share and has a dividend yield of 4.1%. W.P. Carey pays out 159.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Stag Industrial pays out 120.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. W.P. Carey has increased its dividend for 2 consecutive years and Stag Industrial has increased its dividend for 7 consecutive years.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| W.P. Carey | 1 | 5 | 5 | 0 | 2.36 |
| Stag Industrial | 1 | 6 | 2 | 0 | 2.11 |
W.P. Carey presently has a consensus price target of $76.90, suggesting a potential upside of 2.02%. Stag Industrial has a consensus price target of $40.00, suggesting a potential upside of 5.48%. Given Stag Industrial’s higher probable upside, analysts clearly believe Stag Industrial is more favorable than W.P. Carey.
Insider & Institutional Ownership
73.7% of W.P. Carey shares are held by institutional investors. Comparatively, 88.7% of Stag Industrial shares are held by institutional investors. 1.0% of W.P. Carey shares are held by insiders. Comparatively, 1.1% of Stag Industrial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Volatility and Risk
W.P. Carey has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Stag Industrial has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.
Earnings and Valuation
This table compares W.P. Carey and Stag Industrial”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| W.P. Carey | $1.72 billion | 9.78 | $466.36 million | $2.34 | 32.21 |
| Stag Industrial | $845.18 million | 8.58 | $273.52 million | $1.29 | 29.40 |
W.P. Carey has higher revenue and earnings than Stag Industrial. Stag Industrial is trading at a lower price-to-earnings ratio than W.P. Carey, indicating that it is currently the more affordable of the two stocks.
Summary
W.P. Carey beats Stag Industrial on 9 of the 17 factors compared between the two stocks.
About W.P. Carey
W. P. Carey ranks among the largest net lease REITs with a well-diversified portfolio of high-quality, operationally critical commercial real estate, which includes 1,424 net lease properties covering approximately 173 million square feet and a portfolio of 89 self-storage operating properties as of December 31, 2023. With offices in New York, London, Amsterdam and Dallas, the company remains focused on investing primarily in single-tenant, industrial, warehouse and retail properties located in the U.S. and Northern and Western Europe, under long-term net leases with built-in rent escalations.
About Stag Industrial
STAG Industrial, Inc. is a real estate investment company, which engages in acquiring, owning, and managing single-tenant, industrial real estate assets. It offers industrial real estate operating platform to real estate ownership. The company was founded by Benjamin S. Butcher on July 21, 2010 and is headquartered in Boston, MA.
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