Kite Realty Group Trust (NYSE:KRG) and National Retail Properties (NYSE:NNN) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.
Institutional and Insider Ownership
92.2% of Kite Realty Group Trust shares are owned by institutional investors. Comparatively, 91.3% of National Retail Properties shares are owned by institutional investors. 2.1% of Kite Realty Group Trust shares are owned by insiders. Comparatively, 0.8% of National Retail Properties shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Kite Realty Group Trust and National Retail Properties' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Kite Realty Group Trust | $315.17 million | 2.83 | $-530,000.00 | $1.66 | 6.39 |
| National Retail Properties | $670.49 million | 8.42 | $299.18 million | $2.76 | 11.79 |
National Retail Properties has higher revenue and earnings than Kite Realty Group Trust. Kite Realty Group Trust is trading at a lower price-to-earnings ratio than National Retail Properties, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Kite Realty Group Trust and National Retail Properties' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Kite Realty Group Trust | -3.27% | -0.73% | -0.33% |
| National Retail Properties | 35.75% | 6.12% | 3.21% |
Dividends
Kite Realty Group Trust pays an annual dividend of $0.32 per share and has a dividend yield of 3.0%. National Retail Properties pays an annual dividend of $2.08 per share and has a dividend yield of 6.4%. Kite Realty Group Trust pays out 19.3% of its earnings in the form of a dividend. National Retail Properties pays out 75.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Retail Properties has raised its dividend for 10 consecutive years. National Retail Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk and Volatility
Kite Realty Group Trust has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, National Retail Properties has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations for Kite Realty Group Trust and National Retail Properties, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Kite Realty Group Trust | 0 | 6 | 3 | 0 | 2.33 |
| National Retail Properties | 0 | 2 | 3 | 0 | 2.60 |
Kite Realty Group Trust currently has a consensus target price of $13.40, indicating a potential upside of 27.38%. National Retail Properties has a consensus target price of $40.00, indicating a potential upside of 23.11%. Given Kite Realty Group Trust's higher possible upside, equities analysts clearly believe Kite Realty Group Trust is more favorable than National Retail Properties.
Summary
National Retail Properties beats Kite Realty Group Trust on 11 of the 16 factors compared between the two stocks.
