Regency Centers (NASDAQ:REG) and Weyerhaeuser (NYSE:WY) are both large-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.
Insider and Institutional Ownership
89.2% of Regency Centers shares are held by institutional investors. Comparatively, 77.5% of Weyerhaeuser shares are held by institutional investors. 1.0% of Regency Centers shares are held by company insiders. Comparatively, 0.3% of Weyerhaeuser 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.
Dividends
Regency Centers pays an annual dividend of $2.38 per share and has a dividend yield of 4.0%. Weyerhaeuser pays an annual dividend of $0.68 per share and has a dividend yield of 1.7%. Regency Centers pays out 61.2% of its earnings in the form of a dividend. Weyerhaeuser pays out 174.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Regency Centers has raised its dividend for 1 consecutive years and Weyerhaeuser has raised its dividend for 1 consecutive years. Regency Centers is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares Regency Centers and Weyerhaeuser's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Regency Centers | $1.13 billion | 8.91 | $239.43 million | $3.89 | 15.29 |
Weyerhaeuser | $6.55 billion | 4.49 | $-76,000,000.00 | $0.39 | 100.82 |
Regency Centers has higher earnings, but lower revenue than Weyerhaeuser. Regency Centers is trading at a lower price-to-earnings ratio than Weyerhaeuser, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Regency Centers has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Weyerhaeuser has a beta of 1.96, indicating that its stock price is 96% more volatile than the S&P 500.
Profitability
This table compares Regency Centers and Weyerhaeuser's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Regency Centers | 4.51% | 1.01% | 0.56% |
Weyerhaeuser | 4.67% | 3.59% | 1.78% |
Analyst Ratings
This is a breakdown of current ratings for Regency Centers and Weyerhaeuser, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Regency Centers | 1 | 7 | 5 | 0 | 2.31 |
Weyerhaeuser | 0 | 3 | 4 | 0 | 2.57 |
Regency Centers presently has a consensus price target of $52.2273, indicating a potential downside of 12.16%. Weyerhaeuser has a consensus price target of $32.4286, indicating a potential downside of 17.53%. Given Regency Centers' higher probable upside, equities research analysts clearly believe Regency Centers is more favorable than Weyerhaeuser.
Summary
Regency Centers beats Weyerhaeuser on 10 of the 16 factors compared between the two stocks.