Weingarten Realty Investors (NYSE: WRI) and Taubman Centers (NYSE:TCO) are both mid-cap financials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.
This is a summary of current recommendations and price targets for Weingarten Realty Investors and Taubman Centers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Weingarten Realty Investors||0||3||2||0||2.40|
Weingarten Realty Investors presently has a consensus target price of $33.50, indicating a potential upside of 19.13%. Taubman Centers has a consensus target price of $63.22, indicating a potential upside of 4.09%. Given Weingarten Realty Investors’ stronger consensus rating and higher probable upside, equities analysts clearly believe Weingarten Realty Investors is more favorable than Taubman Centers.
Volatility & Risk
Weingarten Realty Investors has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, Taubman Centers has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500.
Weingarten Realty Investors pays an annual dividend of $1.54 per share and has a dividend yield of 5.5%. Taubman Centers pays an annual dividend of $2.50 per share and has a dividend yield of 4.1%. Weingarten Realty Investors pays out 93.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Taubman Centers pays out 277.8% 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 increased its dividend for 8 consecutive years and Taubman Centers has increased its dividend for 8 consecutive years. Weingarten Realty Investors is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
80.7% of Weingarten Realty Investors shares are held by institutional investors. 7.3% of Weingarten Realty Investors shares are held by company insiders. Comparatively, 31.2% of Taubman Centers shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Weingarten Realty Investors and Taubman Centers’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Weingarten Realty Investors||$549.55 million||6.57||$238.93 million||$1.64||17.15|
|Taubman Centers||$629.16 million||5.86||$80.70 million||$0.90||67.49|
Weingarten Realty Investors has higher earnings, but lower revenue than Taubman Centers. Weingarten Realty Investors is trading at a lower price-to-earnings ratio than Taubman Centers, indicating that it is currently the more affordable of the two stocks.
This table compares Weingarten Realty Investors and Taubman Centers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Weingarten Realty Investors||36.86%||12.07%||4.85%|
Weingarten Realty Investors beats Taubman Centers on 14 of the 16 factors compared between the two stocks.
About Weingarten Realty Investors
Weingarten Realty Investors is a real estate investment trust (REIT). The Company’s primary business is leasing space to tenants in the shopping centers it owns or leases. The Company also provides property management services. The Company is in the business of owning, managing and developing retail shopping centers. As of December 31, 2016, the Company had owned or operated under long-term leases, either directly or through its interest in real estate joint ventures or partnerships, a total of 220 centers, primarily neighborhood and community shopping centers, which were located in 18 states spanning the country from coast to coast with approximately 44.7 million square feet of gross leasable area. Its centers are located principally in the South, West Coast and Southeast Coast of the United States with concentrations in Arizona, California, Florida and Texas. It also owned interests in 28 parcels of land that totaled approximately 19.8 million square feet, as of December 31, 2016.
About Taubman Centers
Taubman Centers, Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company’s segment is focused on owning, developing and managing regional shopping centers. The Taubman Realty Group Limited Partnership (the Operating Partnership or TRG) is majority-owned partnership subsidiary of the Company that owns direct or indirect interests in all of its real estate properties. The Company owns, leases, acquires, disposes of, develops, expands and manages regional and super-regional shopping centers and interests therein. Its owned portfolio of operating centers as of December 31, 2016 consisted of 23 urban and suburban shopping centers operating in 11 the United States states, Puerto Rico, South Korea, and China. The consolidated businesses consist of shopping centers and entities that are controlled by ownership or contractual agreements, The Taubman Company LLC (Manager), and Taubman Properties Asia LLC and its subsidiaries (Taubman Asia).
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