Camden Property Trust (NYSE:CPT) and Federal Realty Investment Trust (NYSE:FRT) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, earnings, dividends, risk and valuation.
Camden Property Trust pays an annual dividend of $3.20 per share and has a dividend yield of 3.0%. Federal Realty Investment Trust pays an annual dividend of $4.08 per share and has a dividend yield of 3.1%. Camden Property Trust pays out 67.1% of its earnings in the form of a dividend. Federal Realty Investment Trust pays out 65.5% 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. Camden Property Trust has increased its dividend for 8 consecutive years and Federal Realty Investment Trust has increased its dividend for 51 consecutive years. Federal Realty Investment Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of recent ratings for Camden Property Trust and Federal Realty Investment Trust, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Camden Property Trust||0||8||9||0||2.53|
|Federal Realty Investment Trust||0||5||5||0||2.50|
Camden Property Trust presently has a consensus price target of $101.15, suggesting a potential downside of 4.11%. Federal Realty Investment Trust has a consensus price target of $139.43, suggesting a potential upside of 4.88%. Given Federal Realty Investment Trust’s higher probable upside, analysts plainly believe Federal Realty Investment Trust is more favorable than Camden Property Trust.
This table compares Camden Property Trust and Federal Realty Investment Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Camden Property Trust||16.05%||4.48%||2.51%|
|Federal Realty Investment Trust||27.82%||11.13%||4.08%|
Insider & Institutional Ownership
92.9% of Camden Property Trust shares are held by institutional investors. Comparatively, 89.8% of Federal Realty Investment Trust shares are held by institutional investors. 3.4% of Camden Property Trust shares are held by insiders. Comparatively, 0.8% of Federal Realty Investment Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Camden Property Trust and Federal Realty Investment Trust’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Camden Property Trust||$954.51 million||10.70||$156.12 million||$4.77||22.12|
|Federal Realty Investment Trust||$915.44 million||10.88||$241.90 million||$6.23||21.34|
Federal Realty Investment Trust has lower revenue, but higher earnings than Camden Property Trust. Federal Realty Investment Trust is trading at a lower price-to-earnings ratio than Camden Property Trust, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Camden Property Trust has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, Federal Realty Investment Trust has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500.
Federal Realty Investment Trust beats Camden Property Trust on 10 of the 16 factors compared between the two stocks.
About Camden Property Trust
Camden Property Trust, an S&P 400 Company, is a real estate company engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. Camden owns interests in and operates 161 properties containing 55,160 apartment homes across the United States. Upon completion of 6 properties currently under development, the Company's portfolio will increase to 56,858 apartment homes in 167 properties. Camden was recently named by FORTUNE® Magazine for the eleventh consecutive year as one of the 100 Best Companies to Work For in America, ranking #24.
About Federal Realty Investment Trust
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 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.
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