American Assets Trust (NYSE: AAT) and Acadia Realty Trust (NYSE:AKR) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.
Valuation & Earnings
This table compares American Assets Trust and Acadia Realty Trust’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|American Assets Trust||$298.95 million||6.37||$168.82 million||$0.66||61.23|
|Acadia Realty Trust||$251.17 million||9.89||$140.01 million||$0.64||46.38|
American Assets Trust has higher revenue and earnings than Acadia Realty Trust. Acadia Realty Trust is trading at a lower price-to-earnings ratio than American Assets Trust, indicating that it is currently the more affordable of the two stocks.
This table compares American Assets Trust and Acadia Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|American Assets Trust||10.93%||3.94%||1.61%|
|Acadia Realty Trust||23.63%||2.50%||1.37%|
American Assets Trust pays an annual dividend of $1.04 per share and has a dividend yield of 2.6%. Acadia Realty Trust pays an annual dividend of $1.04 per share and has a dividend yield of 3.5%. American Assets Trust pays out 157.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Acadia Realty Trust pays out 162.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Acadia Realty Trust has increased its dividend for 4 consecutive years. Acadia Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of current ratings and recommmendations for American Assets Trust and Acadia Realty Trust, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American Assets Trust||0||1||1||0||2.50|
|Acadia Realty Trust||0||1||3||0||2.75|
American Assets Trust presently has a consensus target price of $47.00, suggesting a potential upside of 16.31%. Acadia Realty Trust has a consensus target price of $33.50, suggesting a potential upside of 12.87%. Given American Assets Trust’s higher probable upside, research analysts plainly believe American Assets Trust is more favorable than Acadia Realty Trust.
Volatility and Risk
American Assets Trust has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, Acadia Realty Trust has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.
Institutional & Insider Ownership
97.8% of American Assets Trust shares are held by institutional investors. 34.2% of American Assets Trust shares are held by insiders. Comparatively, 1.7% of Acadia Realty Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
American Assets Trust beats Acadia Realty Trust on 10 of the 17 factors compared between the two stocks.
American Assets Trust Company Profile
American Assets Trust, Inc. is a full service, vertically integrated and self-administered real estate investment trust (REIT). The Company owns, operates, acquires and develops retail, office, multifamily and mixed-use properties in Southern California, Northern California, Oregon, Washington, Texas and Hawaii markets. The Company operates in four business segments: retail, office, multifamily and mixed-use. As of December 31, 2016, the Company’s portfolio consisted of 11 retail shopping centers; seven office properties; a mixed-use property consisting of a 369-room all-suite hotel and a retail shopping center, and five multifamily properties. Additionally, as of December 31, 2016, the Company owned land at four of its properties that it classified as held for development and construction in progress. The Company’s markets include San Diego, the San Francisco Bay Area, Portland, Oregon, Bellevue, Washington and Oahu, Hawaii.
Acadia Realty Trust Company Profile
Acadia Realty Trust is a real estate investment trust. The Company is focused on the ownership, acquisition, development and management of retail properties located in the United States. It operates through three segments: Core Portfolio, Funds and Structured Financing. Core Portfolio and Fund properties primarily consist of street and urban retail, and dense suburban shopping centers. Funds holds primarily retail real estate in which it co-invests with institutional investors. Structured Financing consists of earnings and expenses related to notes and mortgages receivable, which are held within the Core Portfolio or the Funds. As of December 31, 2016, it had ownership interests in 182 properties within its core portfolio. In the Core Portfolio segment, the Company owned an interest in a 311,000 square foot shopping center, a 28,000 square foot retail and an interest in an 87,000 square foot retail property, among others, as of December 31, 2016.
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