Reviewing Kite Realty Group Trust (KRG) and Rouse Properties (RSE)

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

Insider and Institutional Ownership

95.8% of Kite Realty Group Trust shares are held by institutional investors. 1.9% of Kite Realty Group Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Kite Realty Group Trust $360.76 million 4.38 $224.39 million $0.15 126.07
Rouse Properties N/A N/A N/A N/A N/A

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

Profitability

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

Net Margins Return on Equity Return on Assets
Kite Realty Group Trust 3.60% 0.80% 0.36%
Rouse Properties -12.34% -9.28% -1.58%

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 806.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kite Realty Group Trust has increased its dividend for 3 consecutive years and Rouse Properties has increased its dividend for 4 consecutive years.

Volatility & Risk

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

Analyst Recommendations

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

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

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

Summary

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

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.

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.

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