National Retail Properties (NYSE: NNN) and Acadia Realty Trust (NYSE:AKR) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitabiliy and dividends.

Earnings and Valuation

This table compares National Retail Properties and Acadia Realty Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
National Retail Properties $562.72 million 10.74 $500.46 million $1.33 30.45
Acadia Realty Trust $251.17 million 9.91 $140.01 million $0.64 46.49

National Retail Properties has higher revenue and earnings than Acadia Realty Trust. National Retail Properties is trading at a lower price-to-earnings ratio than Acadia Realty Trust, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for National Retail Properties and Acadia Realty Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Retail Properties 0 3 3 0 2.50
Acadia Realty Trust 0 2 3 0 2.60

National Retail Properties presently has a consensus target price of $48.50, suggesting a potential upside of 19.75%. Acadia Realty Trust has a consensus target price of $33.50, suggesting a potential upside of 12.61%. Given National Retail Properties’ higher possible upside, analysts clearly believe National Retail Properties is more favorable than Acadia Realty Trust.

Risk & Volatility

National Retail Properties has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500. Comparatively, Acadia Realty Trust has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500.

Insider and Institutional Ownership

89.8% of National Retail Properties shares are held by institutional investors. 1.0% of National Retail Properties shares are held by insiders. Comparatively, 1.7% of Acadia Realty Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares National Retail Properties and Acadia Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Retail Properties 44.17% 8.22% 4.03%
Acadia Realty Trust 23.63% 2.50% 1.37%

Dividends

National Retail Properties pays an annual dividend of $1.90 per share and has a dividend yield of 4.7%. Acadia Realty Trust pays an annual dividend of $1.04 per share and has a dividend yield of 3.5%. National Retail Properties pays out 142.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Acadia Realty Trust pays out 162.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Retail Properties has raised its dividend for 4 consecutive years and Acadia Realty Trust has raised its dividend for 7 consecutive years. National Retail Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

National Retail Properties beats Acadia Realty Trust on 11 of the 16 factors compared between the two stocks.

About National Retail Properties

National Retail Properties, Inc. is a real estate investment trust (REIT). The Company acquires, owns, invests in and develops properties that are leased primarily to retail tenants under long-term net leases and are primarily held for investment. As of December 31, 2016, it owned 2,535 properties with an aggregate gross leasable area of approximately 27,204,000 square feet, located in 48 states. The Company focuses on investing in a range of property and tenant types; leases, mortgages and other types of real estate interests; loans secured by personal property; loans secured by partnership or membership interests in partnerships or limited liability companies, and securities of other REITs, or other issuers, including for the purpose of exercising control over such entities. The Company owns a portfolio of freestanding retail stores across the United States. It owns approximately 2,290 stores, which are leased to over 400 tenants in approximately 40 different retail categories.

About Acadia Realty Trust

Acadia Realty Trust is a real estate investment trust. The Company is focused on the ownership, acquisition, development and management of retail properties located in the United States. It operates through three segments: Core Portfolio, Funds and Structured Financing. Core Portfolio and Fund properties primarily consist of street and urban retail, and dense suburban shopping centers. Funds holds primarily retail real estate in which it co-invests with institutional investors. Structured Financing consists of earnings and expenses related to notes and mortgages receivable, which are held within the Core Portfolio or the Funds. As of December 31, 2016, it had ownership interests in 182 properties within its core portfolio. In the Core Portfolio segment, the Company owned an interest in a 311,000 square foot shopping center, a 28,000 square foot retail and an interest in an 87,000 square foot retail property, among others, as of December 31, 2016.

Receive News & Ratings for National Retail Properties Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for National Retail Properties and related companies with MarketBeat.com's FREE daily email newsletter.