Financial Analysis: FrontView REIT (NYSE:FVR) vs. Federal Realty Investment Trust (NYSE:FRT)

Federal Realty Investment Trust (NYSE:FRT) and FrontView REIT (NYSE:FVR) are both real estate companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Profitability

This table compares Federal Realty Investment Trust and FrontView REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Federal Realty Investment Trust	32.67%	13.65%	4.83%
FrontView REIT	2.10%	0.29%	0.17%

Institutional and Insider Ownership

93.9% of Federal Realty Investment Trust shares are owned by institutional investors. 1.1% of Federal Realty Investment Trust shares are owned by insiders. Comparatively, 9.6% of FrontView REIT shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Federal Realty Investment Trust pays an annual dividend of $4.64 per share and has a dividend yield of 3.9%. FrontView REIT pays an annual dividend of $0.86 per share and has a dividend yield of 4.3%. Federal Realty Investment Trust pays out 93.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. FrontView REIT pays out 2,866.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Federal Realty Investment Trust has raised its dividend for 58 consecutive years.

Earnings & Valuation

This table compares Federal Realty Investment Trust and FrontView REIT”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Federal Realty Investment Trust	$1.34 billion	7.61	$411.08 million	$4.95	23.76
FrontView REIT	$67.11 million	7.29	-$3.83 million	$0.03	666.50

Federal Realty Investment Trust has higher revenue and earnings than FrontView REIT. Federal Realty Investment Trust is trading at a lower price-to-earnings ratio than FrontView REIT, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Federal Realty Investment Trust and FrontView REIT, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Federal Realty Investment Trust	0	6	10	2	2.78
FrontView REIT	0	4	7	2	2.85

Federal Realty Investment Trust presently has a consensus target price of $128.44, suggesting a potential upside of 9.22%. FrontView REIT has a consensus target price of $22.50, suggesting a potential upside of 12.53%. Given FrontView REIT’s stronger consensus rating and higher probable upside, analysts clearly believe FrontView REIT is more favorable than Federal Realty Investment Trust.

Risk and Volatility

Federal Realty Investment Trust has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, FrontView REIT has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.

Summary

Federal Realty Investment Trust beats FrontView REIT on 11 of the 17 factors compared between the two stocks.

About Federal Realty Investment Trust

Federal Realty Investment Trust is an equity real estate investment trust, which engages in the provision of ownership, management, and redevelopment of retail and mixed-use properties located primarily in communities where demand exceeds supply in strategically selected metropolitan markets. The company was founded in 1962 and is headquartered in North Bethesda, MD.

About FrontView REIT

FrontView REIT specializes in real estate investing.