Analyzing AmREIT (AMRE) & Kite Realty Group Trust (KRG)

AmREIT (NYSE: AMRE) and Kite Realty Group Trust (NYSE:KRG) are both small-cap financials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Insider and Institutional Ownership

93.8% 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 is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
AmREIT N/A N/A N/A
Kite Realty Group Trust 3.31% 0.74% 0.33%

Analyst Ratings

This is a summary of current ratings and price targets for AmREIT and Kite Realty Group Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AmREIT 0 0 0 0 N/A
Kite Realty Group Trust 0 4 4 0 2.50

Kite Realty Group Trust has a consensus target price of $20.00, suggesting a potential upside of 33.96%. Given Kite Realty Group Trust’s higher possible upside, analysts clearly believe Kite Realty Group Trust is more favorable than AmREIT.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AmREIT N/A N/A N/A $0.24 110.63
Kite Realty Group Trust $358.82 million 3.48 $11.87 million $0.14 106.64

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

Dividends

Kite Realty Group Trust pays an annual dividend of $1.27 per share and has a dividend yield of 8.5%. AmREIT does not pay a dividend. Kite Realty Group Trust pays out 907.1% 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 4 consecutive years.

Summary

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

About AmREIT

AmREIT, Inc. (AmREIT) is a full service, vertically integrated and self-administered real estate investment trust (REIT) that owns, operates, acquires and selectively develops and redevelops primarily neighborhood and community shopping centers located in high-traffic, densely populated, affluent areas with high barriers to entry. The Company’s shopping centers are anchored by national and local retailers, including supermarket chains, drug stores and other necessity-based retailers. In June 2013, AmREIT Inc announced that it has completed the acquisition of Fountain Oaks Shopping Center, a 160,600 square foot Kroger-anchored shopping center in the north Buckhead submarket of Atlanta, Georgia. Effective September 24, 2013, AmREIT Inc, through its AmREIT Realty Investment Corp subsidiary, acquired Woodlake Square Shopping Center, an owner and operator of shopping centers. In August 2014, AmREIT Inc completed the acquisition of Tuxedo Festival Shopping Center.

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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