Stag Industrial (STAG) & Ramco-Gershenson Properties Trust (RPT) Head to Head Analysis

Stag Industrial (NYSE:STAG) and Ramco-Gershenson Properties Trust (NYSE:RPT) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Stag Industrial and Ramco-Gershenson Properties Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stag Industrial 19.24% 5.08% 2.41%
Ramco-Gershenson Properties Trust 23.37% 7.83% 2.99%

Dividends

Stag Industrial pays an annual dividend of $1.42 per share and has a dividend yield of 5.2%. Ramco-Gershenson Properties Trust pays an annual dividend of $0.88 per share and has a dividend yield of 6.6%. Stag Industrial pays out 84.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ramco-Gershenson Properties Trust pays out 64.7% of its earnings in the form of a dividend. Stag Industrial has increased its dividend for 7 consecutive years and Ramco-Gershenson Properties Trust has increased its dividend for 5 consecutive years. Ramco-Gershenson Properties Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Stag Industrial and Ramco-Gershenson Properties Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stag Industrial $301.09 million 9.51 $31.25 million $1.69 16.22
Ramco-Gershenson Properties Trust $265.08 million 4.01 $69.06 million $1.36 9.74

Ramco-Gershenson Properties Trust has lower revenue, but higher earnings than Stag Industrial. Ramco-Gershenson Properties Trust is trading at a lower price-to-earnings ratio than Stag Industrial, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for Stag Industrial and Ramco-Gershenson Properties Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stag Industrial 0 4 3 0 2.43
Ramco-Gershenson Properties Trust 1 5 2 0 2.13

Stag Industrial presently has a consensus price target of $28.83, indicating a potential upside of 5.15%. Ramco-Gershenson Properties Trust has a consensus price target of $13.00, indicating a potential downside of 1.89%. Given Stag Industrial’s stronger consensus rating and higher possible upside, analysts clearly believe Stag Industrial is more favorable than Ramco-Gershenson Properties Trust.

Risk & Volatility

Stag Industrial has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, Ramco-Gershenson Properties Trust has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.

Institutional & Insider Ownership

84.4% of Stag Industrial shares are owned by institutional investors. 1.7% of Stag Industrial shares are owned by insiders. Comparatively, 3.5% of Ramco-Gershenson Properties Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Stag Industrial beats Ramco-Gershenson Properties Trust on 10 of the 17 factors compared between the two stocks.

Stag Industrial Company Profile

STAG Industrial, Inc. (the ?Company?) is an industrial real estate operating company focused on the acquisition and operation of single-tenant, industrial properties throughout the United States. The Company was formed as a Maryland corporation and has elected to be treated and intends to continue to qualify as a real estate investment trust (?REIT?) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended. The Company is structured as an umbrella partnership REIT, commonly called an UPREIT, and owns substantially all of its assets and conducts substantially all of its business through its operating partnership, STAG Industrial Operating Partnership, L.P., a Delaware limited partnership (the ?Operating Partnership?). As of March 31, 2018 and December 31, 2017, the Company owned a 95.8% and 95.9%, respectively, common equity interest in the Operating Partnership. The Company, through its wholly owned subsidiary, is the sole general partner of the Operating Partnership.

Ramco-Gershenson Properties Trust Company Profile

RAMCO (NYSE:RPT) is a premier, national publicly-traded shopping center real estate investment trust (REIT) based in Farmington Hills, Michigan. The Company's primary business is the ownership and management of regional town centers, urban infill properties and neighborhood shopping centers primarily located in 15 of the 40 largest metropolitan markets in the United States. At March 31, 2018, the Company owned interests in and managed a portfolio of 56 shopping centers and three joint venture properties. At March 31, 2018, the Company's consolidated portfolio was 93.6% leased. RAMCO is a fully-integrated qualified REIT that is self-administered and self-managed. For additional information about the Company please visit www.RAMCOproperties.com or follow RAMCO on Twitter @RAMCOproperties and facebook.com/RAMCOproperties.rpt/.

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