Washington Prime Group (NYSE: WPG) and DDR Corp. (NYSE:DDR) are both financials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.
Valuation & Earnings
This table compares Washington Prime Group and DDR Corp.’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Washington Prime Group||$819.27 million||1.82||$487.39 million||$0.92||8.73|
|DDR Corp.||$963.85 million||3.51||$622.40 million||($0.20)||-46.05|
DDR Corp. has higher revenue and earnings than Washington Prime Group. DDR Corp. is trading at a lower price-to-earnings ratio than Washington Prime Group, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Washington Prime Group has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, DDR Corp. has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Washington Prime Group and DDR Corp., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Washington Prime Group||1||0||0||0||1.00|
DDR Corp. has a consensus target price of $13.50, indicating a potential upside of 46.58%. Given DDR Corp.’s stronger consensus rating and higher possible upside, analysts plainly believe DDR Corp. is more favorable than Washington Prime Group.
Institutional & Insider Ownership
92.0% of Washington Prime Group shares are held by institutional investors. Comparatively, 80.2% of DDR Corp. shares are held by institutional investors. 0.3% of Washington Prime Group shares are held by insiders. Comparatively, 16.1% of DDR Corp. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Washington Prime Group and DDR Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Washington Prime Group||86.96%||60.18%||13.69%|
Washington Prime Group pays an annual dividend of $1.00 per share and has a dividend yield of 12.5%. DDR Corp. pays an annual dividend of $0.76 per share and has a dividend yield of 8.3%. Washington Prime Group pays out 108.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DDR Corp. pays out -380.0% of its earnings in the form of a dividend. DDR Corp. has increased its dividend for 6 consecutive years.
DDR Corp. beats Washington Prime Group on 10 of the 17 factors compared between the two stocks.
Washington Prime Group Company Profile
Washington Prime Group Inc. (WPG Inc.), formerly WP Glimcher Inc., operates as a self-administered and self-managed real estate investment trust (REIT). The Company’s primary business is the ownership, development and management of retail real estate within the United States. The Company owns, develops and manages enclosed retail properties and community centers. As of December 31, 2016, its assets consisted of material interests in 114 shopping centers in the United States, consisting of approximately 63 million square feet of gross leasable area. The Company also owns parcels of land, which can be used for either the development of new shopping centers or the expansion of existing properties. Washington Prime Group, L.P. is the Company’s majority-owned partnership subsidiary that owns, develops and manages, through its affiliates, all of WPG Inc.’s real estate properties and other assets. Its properties include Irving Mall, Lindale Mall, Markland Plaza and Royal Eagle Plaza.
DDR Corp. Company Profile
DDR Corp. is a self-administered and self-managed real estate investment trust. It operates through two segments: shopping centers and loan investments. It is in the business of acquiring, owning, developing, redeveloping, expanding, leasing and managing shopping centers. As of December 31, 2016, it owned and managed approximately 106 million total square feet of gross leasable area (GLA). As of December 31, 2016, the portfolio properties included 319 shopping centers (including 152 centers owned through joint ventures). As of December 31, 2016, the portfolio properties also included over 650 acres of undeveloped land, including parcels located adjacent to certain of the shopping centers. As of December 31, 2016, the portfolio properties aggregated to 75.8 million square feet of Company-owned GLA located in 35 states, plus Puerto Rico. These centers are in the Southeast and Midwest, with significant concentrations in Florida, Georgia, Ohio and North Carolina, as well as Puerto Rico.
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