Head to Head Comparison: Seritage Growth Properties (NYSE:SRG) & W.P. Carey (NYSE:WPC)

Seritage Growth Properties (NYSE:SRG) and W.P. Carey (NYSE:WPC) are both real estate companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Profitability

This table compares Seritage Growth Properties and W.P. Carey’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Seritage Growth Properties	-419.02%	-17.06%	-12.94%
W.P. Carey	36.34%	7.81%	3.58%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Seritage Growth Properties and W.P. Carey, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seritage Growth Properties	1	0	0	0	1.00
W.P. Carey	0	7	9	0	2.56

W.P. Carey has a consensus target price of $77.36, suggesting a potential upside of 21.01%. Given W.P. Carey’s stronger consensus rating and higher probable upside, analysts plainly believe W.P. Carey is more favorable than Seritage Growth Properties.

Risk & Volatility

Seritage Growth Properties has a beta of 2.24, meaning that its stock price is 124% more volatile than the S&P 500. Comparatively, W.P. Carey has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500.

Institutional and Insider Ownership

78.9% of Seritage Growth Properties shares are owned by institutional investors. Comparatively, 73.7% of W.P. Carey shares are owned by institutional investors. 0.2% of Seritage Growth Properties shares are owned by insiders. Comparatively, 1.0% of W.P. Carey shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Seritage Growth Properties and W.P. Carey”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seritage Growth Properties	$18.20 million	5.03	-$68.21 million	($1.04)	-1.56
W.P. Carey	$1.72 billion	8.48	$466.36 million	$2.93	21.82

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

Summary

W.P. Carey beats Seritage Growth Properties on 12 of the 14 factors compared between the two stocks.

About Seritage Growth Properties

Seritage Growth Properties operates as a real estate investment trust. The firm engages in the acquisition, ownership, development, redevelopment, management, and leasing of retail properties throughout the United States. Its property portfolio includes mall, shopping centers and freestanding locations. The company was founded on June 3, 2015 and is headquartered in New York, NY.

About W.P. Carey

W. P. Carey ranks among the largest net lease REITs with a well-diversified portfolio of high-quality, operationally critical commercial real estate, which includes 1,424 net lease properties covering approximately 173 million square feet and a portfolio of 89 self-storage operating properties as of December 31, 2023. With offices in New York, London, Amsterdam and Dallas, the company remains focused on investing primarily in single-tenant, industrial, warehouse and retail properties located in the U.S. and Northern and Western Europe, under long-term net leases with built-in rent escalations.