Plaza Retail REIT (OTCMKTS:PAZRF) & Kimco Realty (NYSE:KIM) Financial Analysis

Kimco Realty (NYSE:KIM) and Plaza Retail REIT (OTCMKTS:PAZRF) are both real estate companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Earnings and Valuation

This table compares Kimco Realty and Plaza Retail REIT”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kimco Realty	$2.14 billion	7.51	$584.74 million	$0.85	28.19
Plaza Retail REIT	N/A	N/A	N/A	$0.65	6.21

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

Profitability

This table compares Kimco Realty and Plaza Retail REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kimco Realty	27.76%	5.76%	3.07%
Plaza Retail REIT	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and recommmendations for Kimco Realty and Plaza Retail REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kimco Realty	0	10	7	1	2.50
Plaza Retail REIT	0	2	0	0	2.00

Kimco Realty presently has a consensus price target of $26.50, indicating a potential upside of 10.60%. Given Kimco Realty’s stronger consensus rating and higher possible upside, analysts clearly believe Kimco Realty is more favorable than Plaza Retail REIT.

Insider & Institutional Ownership

89.2% of Kimco Realty shares are owned by institutional investors. Comparatively, 22.2% of Plaza Retail REIT shares are owned by institutional investors. 2.2% of Kimco Realty shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Kimco Realty pays an annual dividend of $1.04 per share and has a dividend yield of 4.3%. Plaza Retail REIT pays an annual dividend of $0.24 per share and has a dividend yield of 5.8%. Kimco Realty pays out 122.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Plaza Retail REIT pays out 36.2% of its earnings in the form of a dividend. Kimco Realty has increased its dividend for 2 consecutive years. Plaza Retail REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Kimco Realty beats Plaza Retail REIT on 13 of the 15 factors compared between the two stocks.

About Kimco Realty

Kimco Realty Corp. is a real estate investment trust (REIT) headquartered in New Hyde Park, N.Y., that is one of North America’s largest publicly traded owners and operators of open-air shopping centers. As of December 31, 2018, the company owned interests in 437 U.S. shopping centers comprising 76 million square feet of leasable space primarily concentrated in the top major metropolitan markets.

About Plaza Retail REIT

Plaza is an open-ended real estate investment trust and is a leading retail property owner and developer, focused on Ontario, Quebec and Atlantic Canada. Plaza's portfolio at June 30, 2023 includes interests in 234 properties totaling approximately 8.8 million square feet across Canada and additional lands held for development. Plaza's portfolio largely consists of open-air centres and stand-alone small box retail outlets and is predominantly occupied by national tenants.