Head to Head Contrast: Rouse Properties (RSE) versus Kite Realty Group Trust (KRG)

Rouse Properties (NYSE: RSE) and Kite Realty Group Trust (NYSE:KRG) are both financials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Risk and Volatility

Rouse Properties has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, Kite Realty Group Trust has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.

Insider and Institutional Ownership

95.8% of Kite Realty Group Trust shares are owned by institutional investors. 1.9% of Kite Realty Group Trust shares are owned by company 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.

Earnings & Valuation

This table compares Rouse Properties and Kite Realty Group Trust’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Rouse Properties N/A N/A N/A N/A N/A
Kite Realty Group Trust $360.76 million 4.38 $224.39 million $0.14 135.07

Kite Realty Group Trust has higher revenue and earnings than Rouse Properties.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Rouse Properties and Kite Realty Group Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rouse Properties 0 0 0 0 N/A
Kite Realty Group Trust 0 4 3 1 2.63

Kite Realty Group Trust has a consensus price target of $26.00, indicating a potential upside of 37.49%. Given Kite Realty Group Trust’s higher possible upside, analysts clearly believe Kite Realty Group Trust is more favorable than Rouse Properties.

Profitability

This table compares Rouse Properties and Kite Realty Group Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rouse Properties -12.34% -9.28% -1.58%
Kite Realty Group Trust 3.29% 0.73% 0.33%

Dividends

Kite Realty Group Trust pays an annual dividend of $1.21 per share and has a dividend yield of 6.4%. Rouse Properties does not pay a dividend. Kite Realty Group Trust pays out 864.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rouse Properties has increased its dividend for 4 consecutive years and Kite Realty Group Trust has increased its dividend for 3 consecutive years.

Summary

Kite Realty Group Trust beats Rouse Properties on 10 of the 13 factors compared between the two stocks.

About Rouse Properties

Rouse Properties, Inc. is a United States-based real estate investment company. The Company owns and manages regional malls in protected markets or submarkets in the United States. The Company operates through the retail segment, which includes the operation, development and management of regional malls. The Company’s portfolio includes approximately 40 malls and retail centers in over 20 states totaling approximately 24.9 million square feet of retail space. The Company’s properties include Animas Valley Mall; Bayshore Mall; Birchwood Mall; Cache Valley Mall; Chesterfield Towne Center; Chula Vista Center; Colony Square Mall; Fig Garden Village; Grand Traverse Mall; Greenville Mall; Lakeland Square; Lansing Mall; Mall St. Vincent; NewPark Mall; North Plains Mall; Pierre Bossier Mall; Sikes Senter; Silver Lake Mall; Southland Center; Southland Mall; Spring Hill Mall; Valley Hills Mall; Vista Ridge Mall; Washington Park Mall; West Valley Mall; Westwood Mall, and White Mountain Mall.

About Kite Realty Group Trust

Kite Realty Group Trust is a real estate investment trust. The Company, through its subsidiary, Kite Realty Group, L.P., owns interests in various operating subsidiaries and joint ventures engaged in the ownership, operation, acquisition, development and redevelopment of neighborhood and community shopping centers in selected markets in the United States. As of December 31, 2016, the Company owned interests in 108 operating retail properties totaling approximately 21.4 million square feet of gross leasable area (including approximately 6.3 million square feet of non-owned anchor space) located in 20 states. As of December 31, 2016, the Company had an interest in two development projects under construction. In addition to its development projects, as of December 31, 2016, the Company had nine redevelopment projects. As of December 31, 2016, the Company owned interests in one office operating property and an associated parking garage.

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