DDR (NYSE: DDR) and Wheeler Real Estate Investment Trust (NASDAQ:WHLR) are both financials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, profitability, institutional ownership and valuation.
Earnings and Valuation
This table compares DDR and Wheeler Real Estate Investment Trust’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|DDR||$887.95 million||3.21||$60.01 million||($0.04)||-193.25|
|Wheeler Real Estate Investment Trust||$44.16 million||1.12||-$11.20 million||($2.23)||-2.48|
DDR pays an annual dividend of $0.76 per share and has a dividend yield of 9.8%. Wheeler Real Estate Investment Trust pays an annual dividend of $1.36 per share and has a dividend yield of 24.6%. DDR pays out -1,900.0% of its earnings in the form of a dividend. Wheeler Real Estate Investment Trust pays out -61.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. DDR has raised its dividend for 7 consecutive years.
Volatility & Risk
DDR has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, Wheeler Real Estate Investment Trust has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.
Insider & Institutional Ownership
78.9% of DDR shares are held by institutional investors. Comparatively, 28.8% of Wheeler Real Estate Investment Trust shares are held by institutional investors. 16.1% of DDR shares are held by insiders. Comparatively, 5.3% of Wheeler Real Estate Investment Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares DDR and Wheeler Real Estate Investment Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Wheeler Real Estate Investment Trust||-13.61%||-16.99%||-1.92%|
This is a breakdown of recent recommendations for DDR and Wheeler Real Estate Investment Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Wheeler Real Estate Investment Trust||0||2||4||0||2.67|
DDR currently has a consensus target price of $10.63, indicating a potential upside of 37.45%. Wheeler Real Estate Investment Trust has a consensus target price of $14.25, indicating a potential upside of 157.69%. Given Wheeler Real Estate Investment Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Wheeler Real Estate Investment Trust is more favorable than DDR.
DDR beats Wheeler Real Estate Investment Trust on 11 of the 17 factors compared between the two stocks.
DDR Corp. is a self-administered and self-managed real estate investment trust. It operates through two segments: shopping centers and loan investments. It is in the business of acquiring, owning, developing, redeveloping, expanding, leasing and managing shopping centers. As of December 31, 2016, it owned and managed approximately 106 million total square feet of gross leasable area (GLA). As of December 31, 2016, the portfolio properties included 319 shopping centers (including 152 centers owned through joint ventures). As of December 31, 2016, the portfolio properties also included over 650 acres of undeveloped land, including parcels located adjacent to certain of the shopping centers. As of December 31, 2016, the portfolio properties aggregated to 75.8 million square feet of Company-owned GLA located in 35 states, plus Puerto Rico. These centers are in the Southeast and Midwest, with significant concentrations in Florida, Georgia, Ohio and North Carolina, as well as Puerto Rico.
About Wheeler Real Estate Investment Trust
Wheeler Real Estate Investment Trust, Inc. is a self-managed commercial real estate investment company. The Company focuses on acquiring and managing retail properties with a primary focus on grocery-anchored centers. As of December 31, 2016, the Company owned a portfolio consisting of 74 properties, including 59 retail shopping centers and five freestanding retail properties totaling 4,906,511 gross leasable square feet of which approximately 94% were leased, one office property, eight undeveloped land parcels totaling approximately 70 acres and one redevelopment project. Its properties are located in Virginia, North Carolina, South Carolina, Florida, Georgia, Kentucky, Oklahoma, Tennessee, Alabama, New Jersey, Pennsylvania and West Virginia. Its properties include Alex City Marketplace, Berkley Shopping Center, Clover Plaza, Darien Shopping Center, Cypress Shopping Center, Harrodsburg Marketplace, LaGrange Marketplace, Riverbridge Shopping Center and Village of Martinsville.
Receive News & Ratings for DDR Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for DDR and related companies with MarketBeat.com's FREE daily email newsletter.