Reviewing Kite Realty Group Trust (NYSE:KRG) & Weyerhaeuser (NYSE:WY)

Kite Realty Group Trust (NYSE:KRG) and Weyerhaeuser (NYSE:WY) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.

Dividends

Kite Realty Group Trust pays an annual dividend of $1.08 per share and has a dividend yield of 4.8%. Weyerhaeuser pays an annual dividend of $0.84 per share and has a dividend yield of 3.1%. Kite Realty Group Trust pays out 1,542.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Weyerhaeuser pays out 168.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kite Realty Group Trust has raised its dividend for 4 consecutive years and Weyerhaeuser has raised its dividend for 3 consecutive years. Kite Realty Group Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Kite Realty Group Trust has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Weyerhaeuser has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.

Earnings & Valuation

This table compares Kite Realty Group Trust and Weyerhaeuser”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kite Realty Group Trust	$856.17 million	5.79	$4.07 million	$0.07	322.36
Weyerhaeuser	$7.09 billion	2.73	$396.00 million	$0.50	53.48

Weyerhaeuser has higher revenue and earnings than Kite Realty Group Trust. Weyerhaeuser 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.

Institutional & Insider Ownership

90.8% of Kite Realty Group Trust shares are owned by institutional investors. Comparatively, 83.0% of Weyerhaeuser shares are owned by institutional investors. 2.0% of Kite Realty Group Trust shares are owned by insiders. Comparatively, 0.3% of Weyerhaeuser shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Kite Realty Group Trust and Weyerhaeuser’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kite Realty Group Trust	0.48%	0.12%	0.06%
Weyerhaeuser	5.56%	3.86%	2.30%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Kite Realty Group Trust and Weyerhaeuser, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kite Realty Group Trust	0	5	2	1	2.50
Weyerhaeuser	1	2	6	1	2.70

Kite Realty Group Trust presently has a consensus price target of $27.63, suggesting a potential upside of 22.42%. Weyerhaeuser has a consensus price target of $33.25, suggesting a potential upside of 24.35%. Given Weyerhaeuser’s stronger consensus rating and higher possible upside, analysts clearly believe Weyerhaeuser is more favorable than Kite Realty Group Trust.

Summary

Weyerhaeuser beats Kite Realty Group Trust on 11 of the 17 factors compared between the two stocks.

About Kite Realty Group Trust

Kite Realty Group Trust (NYSE: KRG) is a real estate investment trust (REIT) headquartered in Indianapolis, IN that is one of the largest publicly traded owners and operators of open-air shopping centers and mixed-use assets. The Company’s primarily grocery-anchored portfolio is located in high-growth Sun Belt and select strategic gateway markets. The combination of necessity-based grocery-anchored neighborhood and community centers, along with vibrant mixed-use assets makes the KRG portfolio an ideal mix for both retailers and consumers. Publicly listed since 2004, KRG has nearly 60 years of experience in developing, constructing and operating real estate. Using operational, investment, development, and redevelopment expertise, KRG continuously optimizes its portfolio to maximize value and return to shareholders. As of December 31, 2023, the Company owned interests in 180 U.S. open-air shopping centers and mixed-use assets, comprising approximately 28.1 million square feet of gross leasable space.

About Weyerhaeuser

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in North America. Our company is a real estate investment trust. In 2022, we generated $10.2 billion in net sales and employed approximately 9,200 people who serve customers worldwide. Our common stock trades on the New York Stock Exchange under the symbol WY.