Kite Realty Group Trust (NYSE:KRG – Get Free Report) and Wheeler Real Estate Investment Trust (NASDAQ:WHLR – Get Free Report) are both real estate companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.
Risk & Volatility
Kite Realty Group Trust has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Wheeler Real Estate Investment Trust has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.
Institutional and Insider Ownership
90.8% of Kite Realty Group Trust shares are held by institutional investors. Comparatively, 35.3% of Wheeler Real Estate Investment Trust shares are held by institutional investors. 2.7% of Kite Realty Group Trust shares are held by insiders. Comparatively, 55.0% of Wheeler Real Estate Investment Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Kite Realty Group Trust and Wheeler Real Estate Investment Trust”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kite Realty Group Trust | $844.36 million | 6.05 | $298.66 million | $1.62 | 15.94 |
| Wheeler Real Estate Investment Trust | $95.47 million | 0.00 | $8.77 million | ($97,401.07) | -0.00 |
Kite Realty Group Trust has higher revenue and earnings than Wheeler Real Estate Investment Trust. Wheeler Real Estate Investment Trust is trading at a lower price-to-earnings ratio than Kite Realty Group Trust, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Kite Realty Group Trust and Wheeler Real Estate Investment Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kite Realty Group Trust | 42.95% | 11.78% | 5.38% |
| Wheeler Real Estate Investment Trust | -4.42% | -186.97% | -0.52% |
Dividends
Kite Realty Group Trust pays an annual dividend of $1.16 per share and has a dividend yield of 4.5%. Wheeler Real Estate Investment Trust pays an annual dividend of $1.68 per share and has a dividend yield of 523.4%. Kite Realty Group Trust pays out 71.6% of its earnings in the form of a dividend. Wheeler Real Estate Investment Trust pays out -0.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Kite Realty Group Trust has increased its dividend for 4 consecutive years. Wheeler Real Estate Investment Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Kite Realty Group Trust and Wheeler Real Estate Investment Trust, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kite Realty Group Trust | 1 | 8 | 2 | 0 | 2.09 |
| Wheeler Real Estate Investment Trust | 1 | 0 | 0 | 0 | 1.00 |
Kite Realty Group Trust currently has a consensus price target of $27.78, suggesting a potential upside of 7.58%. Given Kite Realty Group Trust’s stronger consensus rating and higher possible upside, equities analysts plainly believe Kite Realty Group Trust is more favorable than Wheeler Real Estate Investment Trust.
Summary
Kite Realty Group Trust beats Wheeler Real Estate Investment Trust on 13 of the 17 factors compared between the two stocks.
About Kite Realty Group Trust
Kite Realty Group Trust is a real estate investment trust that owns, operates, and develops open-air shopping centers and mixed-use properties. Its portfolio includes neighborhood and community centers, many of which are anchored by grocery stores and other essential retailers. The company leases space to retailers and service businesses and works to manage, maintain, and redevelop its properties. Its centers serve communities in Sun Belt markets and other selected regions across the United States.
About Wheeler Real Estate Investment Trust
Wheeler Real Estate Investment Trust, Inc. is a real estate investment trust focused on owning and operating retail properties, particularly grocery-anchored shopping centers. Its properties are designed to serve everyday consumer needs and typically include supermarkets, pharmacies, restaurants, and other service-oriented tenants. The company’s portfolio has historically been concentrated in the Mid-Atlantic and Southeastern United States. Wheeler seeks to generate rental income through leasing space to grocery retailers and other commercial tenants, while managing property operations, tenant relationships, and redevelopment or repositioning opportunities where appropriate.
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