Washington Prime Group (WPG) versus Urban Edge Properties (UE) Head-To-Head Analysis

Washington Prime Group (NYSE: WPG) and Urban Edge Properties (NYSE:UE) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares Washington Prime Group and Urban Edge Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Washington Prime Group 21.85% 16.17% 3.57%
Urban Edge Properties 25.53% 13.43% 4.35%

Earnings & Valuation

This table compares Washington Prime Group and Urban Edge Properties’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Washington Prime Group $843.47 million 1.57 $67.13 million $0.86 8.28
Urban Edge Properties $325.98 million 8.90 $90.81 million $0.97 26.28

Urban Edge Properties has lower revenue, but higher earnings than Washington Prime Group. Washington Prime Group is trading at a lower price-to-earnings ratio than Urban Edge Properties, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and target prices for Washington Prime Group and Urban Edge Properties, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Washington Prime Group 1 0 0 0 1.00
Urban Edge Properties 1 1 0 0 1.50

Urban Edge Properties has a consensus price target of $25.00, suggesting a potential downside of 1.92%. Given Urban Edge Properties’ stronger consensus rating and higher possible upside, analysts clearly believe Urban Edge Properties is more favorable than Washington Prime Group.

Institutional and Insider Ownership

89.8% of Washington Prime Group shares are owned by institutional investors. Comparatively, 89.7% of Urban Edge Properties shares are owned by institutional investors. 0.3% of Washington Prime Group shares are owned by company insiders. Comparatively, 4.7% of Urban Edge Properties shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Washington Prime Group has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, Urban Edge Properties has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500.

Dividends

Washington Prime Group pays an annual dividend of $1.00 per share and has a dividend yield of 14.0%. Urban Edge Properties pays an annual dividend of $0.88 per share and has a dividend yield of 3.5%. Washington Prime Group pays out 116.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Urban Edge Properties pays out 90.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Washington Prime Group has raised its dividend for 2 consecutive years. Washington Prime Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Urban Edge Properties beats Washington Prime Group on 10 of the 16 factors compared between the two stocks.

About Washington Prime Group

Washington Prime Group Inc. (WPG Inc.), formerly WP Glimcher Inc., operates as a self-administered and self-managed real estate investment trust (REIT). The Company’s primary business is the ownership, development and management of retail real estate within the United States. The Company owns, develops and manages enclosed retail properties and community centers. As of December 31, 2016, its assets consisted of material interests in 114 shopping centers in the United States, consisting of approximately 63 million square feet of gross leasable area. The Company also owns parcels of land, which can be used for either the development of new shopping centers or the expansion of existing properties. Washington Prime Group, L.P. is the Company’s majority-owned partnership subsidiary that owns, develops and manages, through its affiliates, all of WPG Inc.’s real estate properties and other assets. Its properties include Irving Mall, Lindale Mall, Markland Plaza and Royal Eagle Plaza.

About Urban Edge Properties

Urban Edge Properties is a real estate investment trust. The Company is focused on managing, developing, redeveloping and acquiring retail real estate in urban communities, in the New York metropolitan region. Urban Edge Properties LP (UELP or the Operating Partnership) serves as its partnership subsidiary and owns, through affiliates, all of its real estate properties and other assets. As of December 31, 2016, its portfolio consisted of 79 shopping centers, three malls and a warehouse park adjacent to one of its centers totaling 14.8 million square feet. As of December 31, 2016, it leased 19 properties under ground and/or building leases. As of December 31, 2016, it had approximately 1,200 leases. Its shopping centers and malls are located at California, Connecticut, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, South Carolina, Virginia and Puerto Rico. Its shopping centers and malls include Signal Hill, Vallejo, Walnut Creek, Newington and others.

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