Analyzing InvenTrust Properties (NYSE:IVT) & Stag Industrial (NYSE:STAG)

Stag Industrial (NYSE:STAG) and InvenTrust Properties (NYSE:IVT) are both mid-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares Stag Industrial and InvenTrust Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stag Industrial	29.24%	6.84%	3.52%
InvenTrust Properties	40.46%	6.65%	4.44%

Institutional and Insider Ownership

88.7% of Stag Industrial shares are held by institutional investors. Comparatively, 61.7% of InvenTrust Properties shares are held by institutional investors. 1.1% of Stag Industrial shares are held by company insiders. Comparatively, 0.4% of InvenTrust Properties shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Stag Industrial pays an annual dividend of $1.49 per share and has a dividend yield of 3.9%. InvenTrust Properties pays an annual dividend of $0.95 per share and has a dividend yield of 3.3%. Stag Industrial pays out 114.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. InvenTrust Properties pays out 62.1% of its earnings in the form of a dividend. Stag Industrial has increased its dividend for 7 consecutive years and InvenTrust Properties has increased its dividend for 4 consecutive years. Stag Industrial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Stag Industrial has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, InvenTrust Properties has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Stag Industrial and InvenTrust Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stag Industrial	0	6	3	0	2.33
InvenTrust Properties	0	3	4	0	2.57

Stag Industrial presently has a consensus price target of $38.89, indicating a potential upside of 2.57%. InvenTrust Properties has a consensus price target of $31.60, indicating a potential upside of 10.20%. Given InvenTrust Properties’ stronger consensus rating and higher probable upside, analysts plainly believe InvenTrust Properties is more favorable than Stag Industrial.

Valuation and Earnings

This table compares Stag Industrial and InvenTrust Properties”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stag Industrial	$767.38 million	9.23	$189.22 million	$1.30	29.17
InvenTrust Properties	$273.97 million	8.12	$13.66 million	$1.53	18.74

Stag Industrial has higher revenue and earnings than InvenTrust Properties. InvenTrust Properties is trading at a lower price-to-earnings ratio than Stag Industrial, indicating that it is currently the more affordable of the two stocks.

Summary

Stag Industrial beats InvenTrust Properties on 10 of the 17 factors compared between the two stocks.

About Stag Industrial

STAG Industrial, Inc. is a real estate investment company, which engages in acquiring, owning, and managing single-tenant, industrial real estate assets. It offers industrial real estate operating platform to real estate ownership. The company was founded by Benjamin S. Butcher on July 21, 2010 and is headquartered in Boston, MA.

About InvenTrust Properties

InvenTrust Properties Corp. (the “Company,” “IVT,” or “InvenTrust”) is a premier Sun Belt, multi-tenant essential retail REIT that owns, leases, redevelops, acquires and manages grocery-anchored neighborhood and community centers as well as high-quality power centers that often have a grocery component. Management pursues the Company’s business strategy by acquiring retail properties in Sun Belt markets, opportunistically disposing of retail properties, maintaining a flexible capital structure, and enhancing environmental, social and governance (“ESG”) practices and standards. A trusted, local operator bringing real estate expertise to its tenant relationships, IVT has built a strong reputation with market participants across its portfolio. IVT is committed to leadership in ESG practices and has been a Global Real Estate Sustainability Benchmark (“GRESB”) member since 2013.