Washington Prime Group (NYSE: WPG) and Acadia Realty Trust (NYSE:AKR) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitabiliy, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.
Analyst Ratings
This is a summary of current ratings and recommmendations for Washington Prime Group and Acadia Realty Trust, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Washington Prime Group | 0 | 1 | 0 | 0 | 2.00 |
| Acadia Realty Trust | 0 | 2 | 3 | 0 | 2.60 |
Acadia Realty Trust has a consensus price target of $33.50, suggesting a potential upside of 12.61%. Given Acadia Realty Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Acadia Realty Trust is more favorable than Washington Prime Group.
Dividends
Washington Prime Group pays an annual dividend of $1.00 per share and has a dividend yield of 11.0%. Acadia Realty Trust pays an annual dividend of $1.04 per share and has a dividend yield of 3.5%. 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. Acadia Realty Trust pays out 162.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Washington Prime Group has increased its dividend for 4 consecutive years. Washington Prime Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation and Earnings
This table compares Washington Prime Group and Acadia Realty Trust’s top-line 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 | 2.06 | $487.39 million | $0.92 | 9.89 |
| Acadia Realty Trust | $251.17 million | 9.91 | $140.01 million | $0.64 | 46.49 |
Washington Prime Group has higher revenue and earnings than Acadia Realty Trust. Washington Prime Group is trading at a lower price-to-earnings ratio than Acadia Realty Trust, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Washington Prime Group and Acadia Realty Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Washington Prime Group | 22.65% | 17.36% | 3.73% |
| Acadia Realty Trust | 23.63% | 2.50% | 1.37% |
Volatility and Risk
Washington Prime Group has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Acadia Realty Trust has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.
Institutional & Insider Ownership
92.5% of Washington Prime Group shares are held by institutional investors. 0.3% of Washington Prime Group shares are held by company insiders. Comparatively, 1.7% of Acadia Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Washington Prime Group beats Acadia Realty Trust 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.
Acadia Realty Trust Company Profile
Acadia Realty Trust is a real estate investment trust. The Company is focused on the ownership, acquisition, development and management of retail properties located in the United States. It operates through three segments: Core Portfolio, Funds and Structured Financing. Core Portfolio and Fund properties primarily consist of street and urban retail, and dense suburban shopping centers. Funds holds primarily retail real estate in which it co-invests with institutional investors. Structured Financing consists of earnings and expenses related to notes and mortgages receivable, which are held within the Core Portfolio or the Funds. As of December 31, 2016, it had ownership interests in 182 properties within its core portfolio. In the Core Portfolio segment, the Company owned an interest in a 311,000 square foot shopping center, a 28,000 square foot retail and an interest in an 87,000 square foot retail property, among others, as of December 31, 2016.
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