Macerich Company (The) (NYSE: MAC) and Cedar Realty Trust (NYSE:CDR) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitabiliy, analyst recommendations, risk, institutional ownership and valuation.

Institutional & Insider Ownership

95.4% of Macerich Company (The) shares are held by institutional investors. Comparatively, 97.5% of Cedar Realty Trust shares are held by institutional investors. 3.8% of Macerich Company (The) shares are held by insiders. Comparatively, 4.5% of Cedar Realty Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Macerich Company (The) and Cedar Realty Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Macerich Company (The) 1 9 3 0 2.15
Cedar Realty Trust 1 1 4 0 2.50

Macerich Company (The) currently has a consensus target price of $69.09, suggesting a potential upside of 15.75%. Cedar Realty Trust has a consensus target price of $6.25, suggesting a potential upside of 17.92%. Given Cedar Realty Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Cedar Realty Trust is more favorable than Macerich Company (The).

Earnings & Valuation

This table compares Macerich Company (The) and Cedar Realty Trust’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Macerich Company (The) $1.08 billion 7.84 $644.59 million $1.02 58.52
Cedar Realty Trust $149.61 million 2.91 $84.71 million ($0.06) -88.32

Macerich Company (The) has higher revenue and earnings than Cedar Realty Trust. Cedar Realty Trust is trading at a lower price-to-earnings ratio than Macerich Company (The), indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Macerich Company (The) has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, Cedar Realty Trust has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.

Dividends

Macerich Company (The) pays an annual dividend of $2.84 per share and has a dividend yield of 4.8%. Cedar Realty Trust pays an annual dividend of $0.20 per share and has a dividend yield of 3.8%. Macerich Company (The) pays out 278.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cedar Realty Trust pays out -333.3% of its earnings in the form of a dividend. Cedar Realty Trust has raised its dividend for 6 consecutive years.

Profitability

This table compares Macerich Company (The) and Cedar Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Macerich Company (The) 14.39% 3.38% 1.49%
Cedar Realty Trust 6.58% 2.49% 0.77%

Summary

Cedar Realty Trust beats Macerich Company (The) on 9 of the 17 factors compared between the two stocks.

About Macerich Company (The)

The Macerich Company is a self-administered and self-managed real estate investment trust (REIT). The Company is involved in the acquisition, ownership, development, redevelopment, management and leasing of regional and community/power shopping centers located throughout the United States. The Company owns ownership interests in, The Macerich Partnership, L.P. (the Operating Partnership). As of December 31, 2016, the Company, through its operating partnership, had ownership interests in 50 regional shopping centers and seven community/power shopping centers. These 57 regional and community/power shopping centers consisted of approximately 56 million square feet of gross leasable area (GLA), as of December 31, 2016. The Company’s properties include Danbury Fair Mall, Desert Sky Mall, Fresno Fashion Fair, NorthPark Mall, Oaks, The, Towne Mall, Valley Mall, Arrowhead Towne Center, Deptford Mall and South Plains Mall.

About Cedar Realty Trust

Cedar Realty Trust, Inc. is a real estate investment trust (REIT). The Company focuses on ownership and operation of grocery-anchored shopping centers straddling the Washington District of Columbia (DC) to Boston corridor. As of December 31, 2016, the Company owned and managed a portfolio of 61 operating properties (excluding properties held for sale) totaling approximately 9.1 million square feet of gross leasable area (GLA). The Company focuses its investment activities on grocery-anchored shopping centers. The Company’s properties portfolio comprises 26 properties in Pennsylvania, eight properties in Massachusetts, seven properties in Connecticut, seven properties in Maryland / Washington, D.C, eight properties in Virginia, four properties in New Jersey and one property in New York. The Company’s 106 are going to expire in the year 2017. The Company conducts all of its businesses through the Cedar Realty Trust Partnership L.P. (the Operating Partnership).

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