Weingarten Realty Investors (NYSE:WRI) and National Retail Properties (NYSE:NNN) are both mid-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.
Insider and Institutional Ownership
81.8% of Weingarten Realty Investors shares are held by institutional investors. Comparatively, 89.2% of National Retail Properties shares are held by institutional investors. 6.3% of Weingarten Realty Investors shares are held by company insiders. Comparatively, 0.8% of National Retail Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Dividends
Weingarten Realty Investors pays an annual dividend of $0.72 per share and has a dividend yield of 2.8%. National Retail Properties pays an annual dividend of $2.08 per share and has a dividend yield of 4.7%. Weingarten Realty Investors pays out 34.3% 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. Weingarten Realty Investors has raised its dividend for 1 consecutive years and National Retail Properties has raised its dividend for 11 consecutive years. National Retail Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares Weingarten Realty Investors and National Retail Properties' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Weingarten Realty Investors | 54.62% | 13.20% | 6.09% |
| National Retail Properties | 35.97% | 6.09% | 3.18% |
Valuation & Earnings
This table compares Weingarten Realty Investors and National Retail Properties' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Weingarten Realty Investors | $486.63 million | 6.69 | $315.43 million | $2.10 | 12.09 |
| National Retail Properties | $670.49 million | 11.46 | $299.18 million | $2.76 | 15.88 |
Weingarten Realty Investors has higher earnings, but lower revenue than National Retail Properties. Weingarten Realty Investors 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.
Volatility and Risk
Weingarten Realty Investors has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, National Retail Properties has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and price targets for Weingarten Realty Investors and National Retail Properties, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Weingarten Realty Investors | 0 | 2 | 4 | 0 | 2.67 |
| National Retail Properties | 0 | 4 | 2 | 0 | 2.33 |
Weingarten Realty Investors presently has a consensus target price of $27.3333, indicating a potential upside of 7.65%. National Retail Properties has a consensus target price of $41.8333, indicating a potential downside of 4.58%. Given Weingarten Realty Investors' stronger consensus rating and higher probable upside, analysts clearly believe Weingarten Realty Investors is more favorable than National Retail Properties.
Summary
Weingarten Realty Investors beats National Retail Properties on 10 of the 17 factors compared between the two stocks.
