Seritage Growth Properties (NYSE:SRG – Get Free Report) and W.P. Carey (NYSE:WPC – Get Free Report) are both real estate companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.
Profitability
This table compares Seritage Growth Properties and W.P. Carey’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Seritage Growth Properties | -419.02% | -17.06% | -12.94% |
| W.P. Carey | 36.34% | 7.81% | 3.58% |
Analyst Ratings
This is a summary of current ratings and recommmendations for Seritage Growth Properties and W.P. Carey, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Seritage Growth Properties | 1 | 0 | 0 | 0 | 1.00 |
| W.P. Carey | 0 | 7 | 9 | 0 | 2.56 |
W.P. Carey has a consensus price target of $77.36, indicating a potential upside of 21.01%. Given W.P. Carey’s stronger consensus rating and higher possible upside, analysts clearly believe W.P. Carey is more favorable than Seritage Growth Properties.
Earnings & Valuation
This table compares Seritage Growth Properties and W.P. Carey”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Seritage Growth Properties | $18.20 million | 5.03 | -$68.21 million | ($1.04) | -1.56 |
| W.P. Carey | $1.72 billion | 8.48 | $466.36 million | $2.93 | 21.82 |
W.P. Carey has higher revenue and earnings than Seritage Growth Properties. Seritage Growth Properties is trading at a lower price-to-earnings ratio than W.P. Carey, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
78.9% of Seritage Growth Properties shares are held by institutional investors. Comparatively, 73.7% of W.P. Carey shares are held by institutional investors. 0.2% of Seritage Growth Properties shares are held by insiders. Comparatively, 1.0% of W.P. Carey shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Risk and Volatility
Seritage Growth Properties has a beta of 2.24, suggesting that its share price is 124% more volatile than the S&P 500. Comparatively, W.P. Carey has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.
Summary
W.P. Carey beats Seritage Growth Properties on 12 of the 14 factors compared between the two stocks.
About Seritage Growth Properties
Seritage Growth Properties operates as a real estate investment trust. The firm engages in the acquisition, ownership, development, redevelopment, management, and leasing of retail properties throughout the United States. Its property portfolio includes mall, shopping centers and freestanding locations. The company was founded on June 3, 2015 and is headquartered in New York, NY.
About W.P. Carey
W. P. Carey ranks among the largest net lease REITs with a well-diversified portfolio of high-quality, operationally critical commercial real estate, which includes 1,424 net lease properties covering approximately 173 million square feet and a portfolio of 89 self-storage operating properties as of December 31, 2023. With offices in New York, London, Amsterdam and Dallas, the company remains focused on investing primarily in single-tenant, industrial, warehouse and retail properties located in the U.S. and Northern and Western Europe, under long-term net leases with built-in rent escalations.
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