Seritage Growth Properties Class A (NYSE: UE) and Urban Edge Properties (NYSE:UE) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings for Seritage Growth Properties Class A and Urban Edge Properties, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Seritage Growth Properties Class A 1 1 0 0 1.50
Urban Edge Properties 0 1 0 0 2.00

Seritage Growth Properties Class A currently has a consensus price target of $39.00, suggesting a potential downside of 23.72%. Given Seritage Growth Properties Class A’s higher probable upside, equities analysts plainly believe Seritage Growth Properties Class A is more favorable than Urban Edge Properties.

Valuation & Earnings

This table compares Seritage Growth Properties Class A and Urban Edge Properties’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Seritage Growth Properties Class A $241.02 million 7.85 -$73.75 million $1.47 34.78
Urban Edge Properties $407.04 million 6.29 $67.07 million $1.34 16.76

Urban Edge Properties has higher revenue and earnings than Seritage Growth Properties Class A. Urban Edge Properties is trading at a lower price-to-earnings ratio than Seritage Growth Properties Class A, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

86.2% of Urban Edge Properties shares are owned by institutional investors. 7.1% of Seritage Growth Properties Class A shares are owned by insiders. Comparatively, 4.4% of Urban Edge Properties shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Seritage Growth Properties Class A pays an annual dividend of $1.00 per share and has a dividend yield of 2.0%. Urban Edge Properties pays an annual dividend of $0.88 per share and has a dividend yield of 3.9%. Seritage Growth Properties Class A pays out 68.0% of its earnings in the form of a dividend. Urban Edge Properties pays out 65.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Urban Edge Properties has raised its dividend for 2 consecutive years. Urban Edge Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Seritage Growth Properties Class A and Urban Edge Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Seritage Growth Properties Class A -13.20% -2.50% -1.22%
Urban Edge Properties 19.70% 7.67% 2.77%

Volatility and Risk

Seritage Growth Properties Class A has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, Urban Edge Properties has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500.

Summary

Urban Edge Properties beats Seritage Growth Properties Class A on 10 of the 16 factors compared between the two stocks.

Seritage Growth Properties Class A Company Profile

Seritage Growth Properties is a publicly-traded, self-administered and self-managed REIT with 222 wholly-owned properties and 26 joint venture properties totaling approximately 39 million square feet of space across 49 states and Puerto Rico. The Company was formed to unlock the underlying real estate value of a high-quality retail portfolio it acquired from Sears Holdings in July 2015. Pursuant to a master lease, the Company has the right to recapture certain space from Sears Holdings for retenanting or redevelopment purposes. The Company's mission is to create and own revitalized shopping, dining, entertainment and mixed-use destinations that provide enriched experiences for consumers and local communities, and create long-term value for our shareholders.

Urban Edge Properties Company Profile

Urban Edge Properties is a NYSE listed real estate investment trust focused on managing, acquiring, developing, and redeveloping retail real estate in urban communities, primarily in the New York metropolitan region. Urban Edge owns 88 properties totaling 16.3 million square feet of gross leasable area.

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