Comparing Federal Realty Investment Trust (NYSE:FRT) and Camden Property Trust (NYSE:CPT)

Federal Realty Investment Trust (NYSE:FRT) and Camden Property Trust (NYSE:CPT) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Dividends

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 an annual dividend of $3.20 per share and has a dividend yield of 3.0%. Federal Realty Investment Trust pays out 65.5% of its earnings in the form of a dividend. Camden Property Trust pays out 67.1% 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. Federal Realty Investment Trust has increased its dividend for 51 consecutive years and Camden Property Trust has increased its dividend for 8 consecutive years. Federal Realty Investment Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Federal Realty Investment Trust and Camden Property Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Federal Realty Investment Trust 27.82% 11.13% 4.08%
Camden Property Trust 16.05% 4.48% 2.51%

Valuation & Earnings

This table compares Federal Realty Investment Trust and Camden Property Trust’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Federal Realty Investment Trust $915.44 million 10.64 $241.90 million $6.23 20.87
Camden Property Trust $954.51 million 10.66 $156.12 million $4.77 22.03

Federal Realty Investment Trust has higher earnings, but lower revenue 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 and Volatility

Federal Realty Investment Trust has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500. Comparatively, Camden Property Trust has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Federal Realty Investment Trust and Camden Property Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Federal Realty Investment Trust 0 4 6 0 2.60
Camden Property Trust 0 8 8 0 2.50

Federal Realty Investment Trust presently has a consensus price target of $141.43, suggesting a potential upside of 8.78%. Camden Property Trust has a consensus price target of $101.50, suggesting a potential downside of 3.40%. Given Federal Realty Investment Trust’s stronger consensus rating and higher possible upside, equities analysts clearly believe Federal Realty Investment Trust is more favorable than Camden Property Trust.

Institutional & Insider Ownership

89.8% of Federal Realty Investment Trust shares are held by institutional investors. Comparatively, 92.9% of Camden Property Trust shares are held by institutional investors. 0.8% of Federal Realty Investment Trust shares are held by insiders. Comparatively, 3.4% of Camden Property Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Federal Realty Investment Trust beats Camden Property Trust on 10 of the 16 factors compared between the two stocks.

Federal Realty Investment Trust Company Profile

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.

Camden Property Trust Company Profile

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.

Receive News & Ratings for Federal Realty Investment Trust Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Federal Realty Investment Trust and related companies with MarketBeat.com's FREE daily email newsletter.