Kite Realty Group Trust (NYSE: KRG) and Rouse Properties (NYSE:RSE) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, valuation, earnings and profitability.
Earnings and Valuation
This table compares Kite Realty Group Trust and Rouse Properties’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Kite Realty Group Trust||$360.76 million||4.66||$224.39 million||$0.14||143.50|
Kite Realty Group Trust has higher revenue and earnings than Rouse Properties.
Kite Realty Group Trust pays an annual dividend of $1.21 per share and has a dividend yield of 6.0%. Rouse Properties does not pay a dividend. Kite Realty Group Trust pays out 864.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kite Realty Group Trust has increased its dividend for 3 consecutive years and Rouse Properties has increased its dividend for 4 consecutive years.
This is a summary of current ratings and price targets for Kite Realty Group Trust and Rouse Properties, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Kite Realty Group Trust||0||3||3||1||2.71|
Kite Realty Group Trust presently has a consensus target price of $26.00, suggesting a potential upside of 29.42%. Given Kite Realty Group Trust’s higher probable upside, research analysts clearly believe Kite Realty Group Trust is more favorable than Rouse Properties.
Volatility & Risk
Kite Realty Group Trust has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, Rouse Properties has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.
Institutional & Insider Ownership
95.7% of Kite Realty Group Trust shares are owned by institutional investors. 1.9% of Kite Realty Group Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Kite Realty Group Trust and Rouse Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Kite Realty Group Trust||3.29%||0.73%||0.33%|
Kite Realty Group Trust beats Rouse Properties on 10 of the 13 factors compared between the two stocks.
About Kite Realty Group Trust
Kite Realty Group Trust is a real estate investment trust. The Company, through its subsidiary, Kite Realty Group, L.P., owns interests in various operating subsidiaries and joint ventures engaged in the ownership, operation, acquisition, development and redevelopment of neighborhood and community shopping centers in selected markets in the United States. As of December 31, 2016, the Company owned interests in 108 operating retail properties totaling approximately 21.4 million square feet of gross leasable area (including approximately 6.3 million square feet of non-owned anchor space) located in 20 states. As of December 31, 2016, the Company had an interest in two development projects under construction. In addition to its development projects, as of December 31, 2016, the Company had nine redevelopment projects. As of December 31, 2016, the Company owned interests in one office operating property and an associated parking garage.
About Rouse Properties
Rouse Properties, Inc. is a United States-based real estate investment company. The Company owns and manages regional malls in protected markets or submarkets in the United States. The Company operates through the retail segment, which includes the operation, development and management of regional malls. The Company’s portfolio includes approximately 40 malls and retail centers in over 20 states totaling approximately 24.9 million square feet of retail space. The Company’s properties include Animas Valley Mall; Bayshore Mall; Birchwood Mall; Cache Valley Mall; Chesterfield Towne Center; Chula Vista Center; Colony Square Mall; Fig Garden Village; Grand Traverse Mall; Greenville Mall; Lakeland Square; Lansing Mall; Mall St. Vincent; NewPark Mall; North Plains Mall; Pierre Bossier Mall; Sikes Senter; Silver Lake Mall; Southland Center; Southland Mall; Spring Hill Mall; Valley Hills Mall; Vista Ridge Mall; Washington Park Mall; West Valley Mall; Westwood Mall, and White Mountain Mall.
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