WP Carey (WPC) vs. Its Rivals Financial Analysis

WP Carey (NYSE: WPC) is one of 236 public companies in the “Real estate investment trusts” industry, but how does it weigh in compared to its rivals? We will compare WP Carey to related businesses based on the strength of its risk, valuation, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Profitability

This table compares WP Carey and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WP Carey 38.04% 8.33% 3.44%
WP Carey Competitors 23.40% 6.57% 2.61%



Dividends

WP Carey pays an annual dividend of $4.06 per share and has a dividend yield of 6.0%. WP Carey pays out 76.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Real estate investment trusts” companies pay a dividend yield of 4.5% and pay out 71.8% of their earnings in the form of a dividend. WP Carey has increased its dividend for 17 consecutive years.

Institutional and Insider Ownership

49.5% of WP Carey shares are held by institutional investors. Comparatively, 72.8% of shares of all “Real estate investment trusts” companies are held by institutional investors. 1.6% of WP Carey shares are held by company insiders. Comparatively, 7.0% of shares of all “Real estate investment trusts” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for WP Carey and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WP Carey 1 3 1 0 2.00
WP Carey Competitors 1694 8195 8783 244 2.40

WP Carey presently has a consensus price target of $70.00, suggesting a potential upside of 4.26%. As a group, “Real estate investment trusts” companies have a potential upside of 6.96%. Given WP Carey’s rivals stronger consensus rating and higher probable upside, analysts clearly believe WP Carey has less favorable growth aspects than its rivals.

Volatility and Risk

WP Carey has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, WP Carey’s rivals have a beta of 0.58, meaning that their average share price is 42% less volatile than the S&P 500.

Earnings & Valuation

This table compares WP Carey and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
WP Carey $848.30 million $277.28 million 12.67
WP Carey Competitors $790.71 million $173.57 million 15.01

WP Carey has higher revenue and earnings than its rivals. WP Carey is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

WP Carey rivals beat WP Carey on 8 of the 15 factors compared.

About WP Carey

Celebrating its 45th anniversary, W. P. Carey Inc. is a leading internally-managed net lease REIT that provides long-term sale-leaseback and build-to-suit financing solutions primarily for companies in the U.S. and Europe. At December 31, 2017, the Company had an enterprise value of approximately $11.5 billion. In addition to its owned portfolio of diversified global real estate, W. P. Carey manages a series of investment programs. Its corporate finance-focused credit and real estate underwriting process is a constant that has been successfully leveraged across a wide variety of industries and property types. Furthermore, its portfolio of long-term leases with creditworthy tenants has an established history of generating stable cash flows, enabling it to deliver consistent and rising dividend income to investors for over four decades. www.wpcarey.com.

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