Head to Head Analysis: NNN REIT (NYSE:NNN) versus InvenTrust Properties (NYSE:IVT)

InvenTrust Properties (NYSE:IVT) and NNN REIT (NYSE:NNN) are both mid-cap real estate companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Profitability

This table compares InvenTrust Properties and NNN REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InvenTrust Properties	4.80%	0.85%	0.53%
NNN REIT	40.35%	8.70%	4.06%

Insider and Institutional Ownership

61.7% of InvenTrust Properties shares are owned by institutional investors. Comparatively, 90.0% of NNN REIT shares are owned by institutional investors. 0.7% of InvenTrust Properties shares are owned by insiders. Comparatively, 0.9% of NNN REIT shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

InvenTrust Properties has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, NNN REIT has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for InvenTrust Properties and NNN REIT, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InvenTrust Properties	0	2	4	1	2.86
NNN REIT	2	10	3	0	2.07

InvenTrust Properties currently has a consensus target price of $34.57, indicating a potential upside of 14.80%. NNN REIT has a consensus target price of $46.88, indicating a potential upside of 12.40%. Given InvenTrust Properties’ stronger consensus rating and higher probable upside, equities analysts plainly believe InvenTrust Properties is more favorable than NNN REIT.

Dividends

InvenTrust Properties pays an annual dividend of $1.00 per share and has a dividend yield of 3.3%. NNN REIT pays an annual dividend of $2.48 per share and has a dividend yield of 5.9%. InvenTrust Properties pays out 500.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NNN REIT pays out 121.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. InvenTrust Properties has raised its dividend for 4 consecutive years and NNN REIT has raised its dividend for 35 consecutive years. NNN REIT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares InvenTrust Properties and NNN REIT”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InvenTrust Properties	$299.17 million	7.85	$111.42 million	$0.20	150.57
NNN REIT	$926.21 million	8.64	$389.78 million	$2.04	20.44

NNN REIT has higher revenue and earnings than InvenTrust Properties. NNN REIT is trading at a lower price-to-earnings ratio than InvenTrust Properties, indicating that it is currently the more affordable of the two stocks.

Summary

NNN REIT beats InvenTrust Properties on 14 of the 18 factors compared between the two stocks.

About InvenTrust Properties

InvenTrust Properties Corp. (the “Company,” “IVT,” or “InvenTrust”) is a premier Sun Belt, multi-tenant essential retail REIT that owns, leases, redevelops, acquires and manages grocery-anchored neighborhood and community centers as well as high-quality power centers that often have a grocery component. Management pursues the Company’s business strategy by acquiring retail properties in Sun Belt markets, opportunistically disposing of retail properties, maintaining a flexible capital structure, and enhancing environmental, social and governance (“ESG”) practices and standards. A trusted, local operator bringing real estate expertise to its tenant relationships, IVT has built a strong reputation with market participants across its portfolio. IVT is committed to leadership in ESG practices and has been a Global Real Estate Sustainability Benchmark (“GRESB”) member since 2013.

About NNN REIT

NNN REIT invests primarily in high-quality retail properties subject generally to long-term, net leases. As of December 31, 2023, the company owned 3,532 properties in 49 states with a gross leasable area of approximately 36.0 million square feet and a weighted average remaining lease term of 10.1 years. NNN is one of only three publicly traded REITs to have increased annual dividends for 34 or more consecutive years.