Mackenzie Realty Capital (NASDAQ:MKZR) versus Kilroy Realty (NYSE:KRC) Head to Head Survey

Kilroy Realty (NYSE:KRC) and Mackenzie Realty Capital (NASDAQ:MKZR) are both real estate companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.

Dividends

Kilroy Realty pays an annual dividend of $2.16 per share and has a dividend yield of 6.3%. Mackenzie Realty Capital pays an annual dividend of $2.00 per share and has a dividend yield of 149.3%. Kilroy Realty pays out 152.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mackenzie Realty Capital pays out -32.5% of its earnings in the form of a dividend. Mackenzie Realty Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

Kilroy Realty has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, Mackenzie Realty Capital has a beta of -0.46, indicating that its stock price is 146% less volatile than the S&P 500.

Institutional and Insider Ownership

94.2% of Kilroy Realty shares are held by institutional investors. 0.8% of Kilroy Realty shares are held by insiders. Comparatively, 6.3% of Mackenzie Realty Capital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Kilroy Realty and Mackenzie Realty Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kilroy Realty	15.47%	3.04%	1.56%
Mackenzie Realty Capital	-90.30%	-18.99%	-7.07%

Analyst Ratings

This is a breakdown of current ratings and price targets for Kilroy Realty and Mackenzie Realty Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kilroy Realty	2	9	5	0	2.19
Mackenzie Realty Capital	1	0	0	0	1.00

Kilroy Realty presently has a consensus price target of $39.47, suggesting a potential upside of 15.18%. Given Kilroy Realty’s stronger consensus rating and higher possible upside, analysts clearly believe Kilroy Realty is more favorable than Mackenzie Realty Capital.

Earnings and Valuation

This table compares Kilroy Realty and Mackenzie Realty Capital”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kilroy Realty	$1.11 billion	3.58	$276.12 million	$1.42	24.13
Mackenzie Realty Capital	$19.38 million	0.16	-$25.92 million	($6.15)	-0.22

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

Summary

Kilroy Realty beats Mackenzie Realty Capital on 13 of the 16 factors compared between the two stocks.

About Kilroy Realty

Kilroy Realty Corporation (NYSE: KRC, the company, Kilroy) is a leading U.S. landlord and developer, with operations in San Diego, Greater Los Angeles, the San Francisco Bay Area, Greater Seattle and Austin. The company has earned global recognition for sustainability, building operations, innovation and design. As a pioneer and innovator in the creation of a more sustainable real estate industry, the company's approach to modern business environments helps drive creativity and productivity for some of the world's leading technology, entertainment, life science and business services companies. The company is a publicly traded real estate investment trust (REIT) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office, life science and mixed-use projects. As of December 31, 2023, Kilroy's stabilized portfolio totaled approximately 17.0 million square feet of primarily office and life science space that was 85.0% occupied and 86.4% leased. The company also had approximately 1,000 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 92.5%. In addition, the company had two in-process life science redevelopment projects totaling approximately 100,000 square feet with total estimated redevelopment costs of $80.0 million and one approximately 875,000 square foot in-process development project with a total estimated investment of $1.0 billion.

About Mackenzie Realty Capital

MacKenzie Realty Capital Inc. is a REIT which focused on investing in multifamily housing and office real estate properties located principally in the United States. MacKenzie Realty Capital Inc. is based in ORINDA, Calif.