Comparing Federal Realty Investment Trust (FRT) and Ryman Hospitality Properties (RHP)

Federal Realty Investment Trust (NYSE:FRT) and Ryman Hospitality Properties (NYSE:RHP) are both mid-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Insider & Institutional Ownership

91.6% of Federal Realty Investment Trust shares are held by institutional investors. Comparatively, 83.0% of Ryman Hospitality Properties shares are held by institutional investors. 1.0% of Federal Realty Investment Trust shares are held by company insiders. Comparatively, 3.2% of Ryman Hospitality Properties shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for Federal Realty Investment Trust and Ryman Hospitality Properties, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Federal Realty Investment Trust 0 2 12 0 2.86
Ryman Hospitality Properties 0 0 5 0 3.00

Federal Realty Investment Trust presently has a consensus price target of $137.00, suggesting a potential upside of 7.56%. Ryman Hospitality Properties has a consensus price target of $86.40, suggesting a potential upside of 12.63%. Given Ryman Hospitality Properties’ stronger consensus rating and higher probable upside, analysts clearly believe Ryman Hospitality Properties is more favorable than Federal Realty Investment Trust.

Profitability

This table compares Federal Realty Investment Trust and Ryman Hospitality Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Federal Realty Investment Trust 26.33% 10.65% 3.79%
Ryman Hospitality Properties 14.11% 51.08% 7.26%

Valuation & Earnings

This table compares Federal Realty Investment Trust and Ryman Hospitality Properties’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Federal Realty Investment Trust $857.35 million 10.97 $289.91 million $5.91 21.55
Ryman Hospitality Properties $1.18 billion 3.32 $176.10 million $5.56 13.80

Federal Realty Investment Trust has higher earnings, but lower revenue than Ryman Hospitality Properties. Ryman Hospitality Properties is trading at a lower price-to-earnings ratio than Federal Realty Investment Trust, indicating that it is currently the more affordable of the two stocks.

Dividends

Federal Realty Investment Trust pays an annual dividend of $4.08 per share and has a dividend yield of 3.2%. Ryman Hospitality Properties pays an annual dividend of $3.40 per share and has a dividend yield of 4.4%. Federal Realty Investment Trust pays out 69.0% of its earnings in the form of a dividend. Ryman Hospitality Properties pays out 61.2% 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. Federal Realty Investment Trust has raised its dividend for 50 consecutive years and Ryman Hospitality Properties has raised its dividend for 4 consecutive years. Ryman Hospitality Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Federal Realty Investment Trust has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500. Comparatively, Ryman Hospitality Properties has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500.

Summary

Ryman Hospitality Properties beats Federal Realty Investment Trust on 9 of the 17 factors compared between the two stocks.

Federal Realty Investment Trust Company Profile

Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail based properties located primarily in major coastal markets from Washington, D.C. to Boston as well as San Francisco and Los Angeles. Founded in 1962, Federal Realty's mission is to deliver long term, sustainable growth through investing in densely populated, affluent communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California, Pike & Rose in North Bethesda, Maryland and Assembly Row in Somerville, Massachusetts. These unique and vibrant environments that combine shopping, dining, living and working provide a destination experience valued by their respective communities. Federal Realty's 105 properties include approximately 3,000 tenants, in approximately 24 million square feet, and over 2,600 residential units. Federal Realty has increased its quarterly dividends to its shareholders for 51 consecutive years, the longest record in the REIT industry. Federal Realty is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT.

Ryman Hospitality Properties Company Profile

Ryman Hospitality Properties, Inc. (NYSE:RHP) is a REIT for federal income tax purposes, specializing in group-oriented, destination hotel assets in urban and resort markets. The Company's owned assets include a network of four upscale, meetings-focused resorts totaling 8,114 rooms that are managed by lodging operator Marriott International, Inc. under the Gaylord Hotels brand. Other owned assets managed by Marriott International, Inc. include Gaylord Springs Golf Links, the Wildhorse Saloon, the General Jackson Showboat, The Inn at Opryland, a 303-room overflow hotel adjacent to Gaylord Opryland and AC Hotel Washington, DC at National Harbor, a 192-room hotel near Gaylord National. The Company also owns and operates media and entertainment assets, including the Grand Ole Opry (opry.com), the legendary weekly showcase of country music's finest performers for over 90 years; the Ryman Auditorium, the storied former home of the Grand Ole Opry located in downtown Nashville; 650 AM WSM, the Opry's radio home; Ole Red, a country lifestyle and entertainment brand; and Opry City Stage, the Opry's first home away from home, in Times Square.

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