Critical Review: New York REIT (NYRT) versus Washington Prime Group (WPG)
New York REIT (NYSE: WPG) and Washington Prime Group (NYSE:WPG) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.
Earnings & Valuation
This table compares New York REIT and Washington Prime Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|New York REIT||$160.27 million||1.85||N/A||N/A||N/A|
|Washington Prime Group||$758.12 million||1.81||$197.06 million||$1.63||4.53|
Insider and Institutional Ownership
74.8% of New York REIT shares are owned by institutional investors. Comparatively, 83.3% of Washington Prime Group shares are owned by institutional investors. 0.2% of New York REIT shares are owned by company insiders. Comparatively, 0.4% of Washington Prime Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares New York REIT and Washington Prime Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|New York REIT||N/A||N/A||N/A|
|Washington Prime Group||10.05%||7.03%||1.63%|
This is a breakdown of current ratings and price targets for New York REIT and Washington Prime Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|New York REIT||0||1||0||0||2.00|
|Washington Prime Group||1||1||0||0||1.50|
New York REIT presently has a consensus price target of $26.00, suggesting a potential upside of 47.06%. Washington Prime Group has a consensus price target of $7.00, suggesting a potential downside of 5.15%. Given New York REIT’s stronger consensus rating and higher possible upside, analysts plainly believe New York REIT is more favorable than Washington Prime Group.
Risk & Volatility
New York REIT has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Washington Prime Group has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.
Washington Prime Group pays an annual dividend of $1.00 per share and has a dividend yield of 13.6%. New York REIT does not pay a dividend. Washington Prime Group pays out 61.3% of its earnings in the form of a dividend. New York REIT has raised its dividend for 3 consecutive years.
Washington Prime Group beats New York REIT on 8 of the 13 factors compared between the two stocks.
About New York REIT
NYRT is a publicly traded real estate investment trust listed on the NYSE that owns income-producing commercial real estate, including office and retail properties, located in New York City. NYRT's shareholders recently adopted a plan of liquidation pursuant to which NYRT is liquidating and winding down and, in connection therewith, is seeking to sell its assets in an orderly fashion to maximize shareholder value.
About Washington Prime Group
Washington Prime Group Inc. is a retail REIT and a recognized leader in the ownership, management, acquisition and development of retail properties. The Company combines a national real estate portfolio with an investment grade balance sheet, leveraging its expertise across the entire shopping center sector to increase cash flow through rigorous management of assets and provide new opportunities to retailers looking for growth throughout the U.S. Washington Prime Group and Shelby's Sugar Shop are registered trademarks of the Company. Trademark and patent registrations for Tangible are currently pending.
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