Analyzing Cedar Realty Trust (NYSE:CDR) & Macerich Company (The) (MAC)

Cedar Realty Trust (NYSE: CDR) and Macerich Company (The) (NYSE:MAC) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitabiliy and earnings.

Institutional & Insider Ownership

97.5% of Cedar Realty Trust shares are owned by institutional investors. Comparatively, 95.4% of Macerich Company (The) shares are owned by institutional investors. 4.5% of Cedar Realty Trust shares are owned by company insiders. Comparatively, 3.8% of Macerich Company (The) shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Cedar Realty Trust and Macerich Company (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cedar Realty Trust 6.58% 2.49% 0.77%
Macerich Company (The) 14.39% 3.38% 1.49%

Volatility & Risk

Cedar Realty Trust has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Macerich Company (The) has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.

Valuation & Earnings

This table compares Cedar Realty Trust and Macerich Company (The)’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cedar Realty Trust $149.61 million 2.91 $84.71 million ($0.06) -88.32
Macerich Company (The) $1.08 billion 7.84 $644.59 million $1.02 58.52

Macerich Company (The) has higher revenue and earnings than Cedar Realty Trust. Cedar Realty Trust is trading at a lower price-to-earnings ratio than Macerich Company (The), indicating that it is currently the more affordable of the two stocks.

Dividends

Cedar Realty Trust pays an annual dividend of $0.20 per share and has a dividend yield of 3.8%. Macerich Company (The) pays an annual dividend of $2.84 per share and has a dividend yield of 4.8%. Cedar Realty Trust pays out -333.3% of its earnings in the form of a dividend. Macerich Company (The) pays out 278.4% 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 Company (The) has increased its dividend for 6 consecutive years. Macerich Company (The) is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Cedar Realty Trust and Macerich Company (The), as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cedar Realty Trust 1 1 4 0 2.50
Macerich Company (The) 1 9 3 0 2.15

Cedar Realty Trust currently has a consensus price target of $6.25, suggesting a potential upside of 17.92%. Macerich Company (The) has a consensus price target of $69.09, suggesting a potential upside of 15.75%. Given Cedar Realty Trust’s stronger consensus rating and higher probable upside, research analysts plainly believe Cedar Realty Trust is more favorable than Macerich Company (The).

Summary

Macerich Company (The) beats Cedar Realty Trust on 9 of the 17 factors compared between the two stocks.

About Cedar Realty Trust

Cedar Realty Trust, Inc. is a real estate investment trust (REIT). The Company focuses on ownership and operation of grocery-anchored shopping centers straddling the Washington District of Columbia (DC) to Boston corridor. As of December 31, 2016, the Company owned and managed a portfolio of 61 operating properties (excluding properties held for sale) totaling approximately 9.1 million square feet of gross leasable area (GLA). The Company focuses its investment activities on grocery-anchored shopping centers. The Company’s properties portfolio comprises 26 properties in Pennsylvania, eight properties in Massachusetts, seven properties in Connecticut, seven properties in Maryland / Washington, D.C, eight properties in Virginia, four properties in New Jersey and one property in New York. The Company’s 106 are going to expire in the year 2017. The Company conducts all of its businesses through the Cedar Realty Trust Partnership L.P. (the Operating Partnership).

About Macerich Company (The)

The Macerich Company is a self-administered and self-managed real estate investment trust (REIT). The Company is involved in the acquisition, ownership, development, redevelopment, management and leasing of regional and community/power shopping centers located throughout the United States. The Company owns ownership interests in, The Macerich Partnership, L.P. (the Operating Partnership). As of December 31, 2016, the Company, through its operating partnership, had ownership interests in 50 regional shopping centers and seven community/power shopping centers. These 57 regional and community/power shopping centers consisted of approximately 56 million square feet of gross leasable area (GLA), as of December 31, 2016. The Company’s properties include Danbury Fair Mall, Desert Sky Mall, Fresno Fashion Fair, NorthPark Mall, Oaks, The, Towne Mall, Valley Mall, Arrowhead Towne Center, Deptford Mall and South Plains Mall.

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