Plaza Retail REIT (OTCMKTS:PAZRF – Get Free Report) and Kimco Realty (NYSE:KIM – Get Free Report) are both real estate companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.
Dividends
Plaza Retail REIT pays an annual dividend of $0.24 per share and has a dividend yield of 5.8%. Kimco Realty pays an annual dividend of $1.04 per share and has a dividend yield of 4.2%. Plaza Retail REIT pays out 36.2% of its earnings in the form of a dividend. Kimco Realty pays out 122.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kimco Realty has increased its dividend for 2 consecutive years. Plaza Retail REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares Plaza Retail REIT and Kimco Realty”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Plaza Retail REIT | N/A | N/A | N/A | $0.65 | 6.21 |
| Kimco Realty | $2.14 billion | 7.69 | $584.74 million | $0.85 | 28.86 |
Kimco Realty has higher revenue and earnings than Plaza Retail REIT. Plaza Retail REIT is trading at a lower price-to-earnings ratio than Kimco Realty, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Plaza Retail REIT and Kimco Realty’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Plaza Retail REIT | N/A | N/A | N/A |
| Kimco Realty | 27.76% | 5.76% | 3.07% |
Institutional and Insider Ownership
22.2% of Plaza Retail REIT shares are held by institutional investors. Comparatively, 89.2% of Kimco Realty shares are held by institutional investors. 2.2% of Kimco Realty shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and target prices for Plaza Retail REIT and Kimco Realty, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Plaza Retail REIT | 0 | 2 | 0 | 0 | 2.00 |
| Kimco Realty | 0 | 10 | 7 | 1 | 2.50 |
Kimco Realty has a consensus target price of $26.50, suggesting a potential upside of 8.01%. Given Kimco Realty’s stronger consensus rating and higher probable upside, analysts clearly believe Kimco Realty is more favorable than Plaza Retail REIT.
Summary
Kimco Realty beats Plaza Retail REIT on 13 of the 15 factors compared between the two stocks.
About Plaza Retail REIT
Plaza is an open-ended real estate investment trust and is a leading retail property owner and developer, focused on Ontario, Quebec and Atlantic Canada. Plaza's portfolio at June 30, 2023 includes interests in 234 properties totaling approximately 8.8 million square feet across Canada and additional lands held for development. Plaza's portfolio largely consists of open-air centres and stand-alone small box retail outlets and is predominantly occupied by national tenants.
About Kimco Realty
Kimco Realty Corp. is a real estate investment trust (REIT) headquartered in New Hyde Park, N.Y., that is one of North America’s largest publicly traded owners and operators of open-air shopping centers. As of December 31, 2018, the company owned interests in 437 U.S. shopping centers comprising 76 million square feet of leasable space primarily concentrated in the top major metropolitan markets.
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