Reviewing General Growth Properties (GGP) and Kite Realty Group Trust (KRG)

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

Institutional and Insider Ownership

88.5% of General Growth Properties shares are owned by institutional investors. Comparatively, 92.3% of Kite Realty Group Trust shares are owned by institutional investors. 35.6% of General Growth Properties shares are owned by company insiders. Comparatively, 1.9% of Kite Realty Group Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for General Growth Properties and Kite Realty Group Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
General Growth Properties 1 5 6 0 2.42
Kite Realty Group Trust 0 4 2 1 2.57

General Growth Properties currently has a consensus price target of $25.46, suggesting a potential upside of 9.03%. Kite Realty Group Trust has a consensus price target of $26.00, suggesting a potential upside of 34.92%. Given Kite Realty Group Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Kite Realty Group Trust is more favorable than General Growth Properties.

Volatility and Risk

General Growth Properties has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, Kite Realty Group Trust has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.

Dividends

General Growth Properties pays an annual dividend of $0.88 per share and has a dividend yield of 3.8%. Kite Realty Group Trust pays an annual dividend of $1.21 per share and has a dividend yield of 6.3%. General Growth Properties pays out 122.2% 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 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. General Growth Properties has raised its dividend for 5 consecutive years and Kite Realty Group Trust has raised its dividend for 3 consecutive years.

Valuation and Earnings

This table compares General Growth Properties and Kite Realty Group Trust’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
General Growth Properties $2.35 billion 9.41 $1.29 billion $0.72 32.43
Kite Realty Group Trust $354.12 million 4.55 $1.18 million $0.15 128.47

General Growth Properties has higher revenue and earnings than Kite Realty Group Trust. General Growth Properties is trading at a lower price-to-earnings ratio than Kite Realty Group Trust, indicating that it is currently the more affordable of the two stocks.

Profitability

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

Net Margins Return on Equity Return on Assets
General Growth Properties 29.96% 8.34% 3.05%
Kite Realty Group Trust 3.60% 0.80% 0.36%

Summary

General Growth Properties beats Kite Realty Group Trust on 13 of the 18 factors compared between the two stocks.

General Growth Properties Company Profile

GGP Inc. (GGP), formerly General Growth Properties, Inc., is a self-administered and self-managed real estate investment trust (REIT). The Company operates as a holding company, which is engaged in the operation, development and management of retail and other rental properties, primarily regional malls. As of December 31, 2016, the Company owned, either entirely or with joint venture partners, 127 retail properties located throughout the United States comprising approximately 125 million square feet of gross leasable area (GLA). As of December 31, 2016, the Company’s retail properties included 200 Lafayette, The Shoppes at Buckland Hills, Northridge Fashion Center, Brass Mill Center, Jordan Creek Town Center, Westroads Mall and Stonestown Galleria. The Company’s business is conducted through GGP Operating Partnership, LP (GGPOP), GGP Nimbus, LP (GGPN) and GGP Limited Partnership (GGPLP, and together with GGPN and GGPOP, the Operating Partnerships), subsidiaries of GGP.

Kite Realty Group Trust Company Profile

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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