Weingarten Realty Investors (NYSE: WRI) and Pennsylvania Real Estate Investment Trust (NYSE:PEI) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitabiliy, institutional ownership, earnings, dividends, risk and analyst recommendations.

Profitability

This table compares Weingarten Realty Investors and Pennsylvania Real Estate Investment Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Weingarten Realty Investors 33.57% 11.03% 4.36%
Pennsylvania Real Estate Investment Trust -3.49% -1.78% -0.52%

Institutional and Insider Ownership

80.0% of Weingarten Realty Investors shares are owned by institutional investors. Comparatively, 96.0% of Pennsylvania Real Estate Investment Trust shares are owned by institutional investors. 7.3% of Weingarten Realty Investors shares are owned by insiders. Comparatively, 4.4% of Pennsylvania Real Estate Investment Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Weingarten Realty Investors and Pennsylvania Real Estate Investment Trust’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Weingarten Realty Investors $571.76 million 7.44 $368.20 million $1.47 22.54
Pennsylvania Real Estate Investment Trust $399.31 million 2.07 $220.88 million ($0.46) -25.74

Weingarten Realty Investors has higher revenue and earnings than Pennsylvania Real Estate Investment Trust. Pennsylvania Real Estate Investment Trust is trading at a lower price-to-earnings ratio than Weingarten Realty Investors, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for Weingarten Realty Investors and Pennsylvania Real Estate Investment Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weingarten Realty Investors 1 2 1 0 2.00
Pennsylvania Real Estate Investment Trust 1 4 0 0 1.80

Weingarten Realty Investors presently has a consensus target price of $37.50, suggesting a potential upside of 13.19%. Pennsylvania Real Estate Investment Trust has a consensus target price of $15.88, suggesting a potential upside of 34.08%. Given Pennsylvania Real Estate Investment Trust’s higher probable upside, analysts clearly believe Pennsylvania Real Estate Investment Trust is more favorable than Weingarten Realty Investors.

Dividends

Weingarten Realty Investors pays an annual dividend of $1.54 per share and has a dividend yield of 4.6%. Pennsylvania Real Estate Investment Trust pays an annual dividend of $0.84 per share and has a dividend yield of 7.1%. Weingarten Realty Investors pays out 104.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pennsylvania Real Estate Investment Trust pays out -182.6% of its earnings in the form of a dividend. Weingarten Realty Investors has increased its dividend for 5 consecutive years and Pennsylvania Real Estate Investment Trust has increased its dividend for 7 consecutive years. Pennsylvania Real Estate Investment Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Weingarten Realty Investors has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, Pennsylvania Real Estate Investment Trust has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.

Summary

Weingarten Realty Investors beats Pennsylvania Real Estate Investment Trust on 11 of the 17 factors compared between the two stocks.

Weingarten Realty Investors Company Profile

Weingarten Realty Investors is a real estate investment trust (REIT). The Company’s primary business is leasing space to tenants in the shopping centers it owns or leases. The Company also provides property management services. The Company is in the business of owning, managing and developing retail shopping centers. As of December 31, 2016, the Company had owned or operated under long-term leases, either directly or through its interest in real estate joint ventures or partnerships, a total of 220 centers, primarily neighborhood and community shopping centers, which were located in 18 states spanning the country from coast to coast with approximately 44.7 million square feet of gross leasable area. Its centers are located principally in the South, West Coast and Southeast Coast of the United States with concentrations in Arizona, California, Florida and Texas. It also owned interests in 28 parcels of land that totaled approximately 19.8 million square feet, as of December 31, 2016.

Pennsylvania Real Estate Investment Trust Company Profile

Pennsylvania Real Estate Investment Trust (PREIT) is a self-managed and self-administered real estate investment trust (REIT). The Company’s primary business is owning and operating retail shopping malls, which it does primarily through operating partnership, PREIT Associates, L.P. (PREIT Associates). The Company is engaged in the ownership, management, leasing, acquisition, redevelopment, development and disposition of shopping malls. The Company has a primary investment focus on retail shopping malls located in the eastern half of the United States, primarily in the Mid-Atlantic region. As of December 31, 2016, the Company owned interests in 30 retail properties, of which 26 are operating properties and four are development or redevelopment properties. As of December 31, 2016, the Company’s 26 operating properties included 22 shopping malls and four other retail properties, had a total of 21.7 million square feet and were located in nine states.

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