Federal Realty Investment Trust (NYSE:FRT – Get Free Report) and Phillips Edison & Company, Inc. (NASDAQ:PECO – Get Free Report) are both mid-cap real estate companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.
Insider and Institutional Ownership
93.9% of Federal Realty Investment Trust shares are held by institutional investors. Comparatively, 80.7% of Phillips Edison & Company, Inc. shares are held by institutional investors. 1.1% of Federal Realty Investment Trust shares are held by company insiders. Comparatively, 8.1% of Phillips Edison & Company, Inc. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Federal Realty Investment Trust and Phillips Edison & Company, Inc.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Federal Realty Investment Trust | 32.60% | 13.76% | 4.85% |
| Phillips Edison & Company, Inc. | 23.87% | 6.90% | 3.36% |
Valuation & Earnings
This table compares Federal Realty Investment Trust and Phillips Edison & Company, Inc.”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Federal Realty Investment Trust | $1.28 billion | 7.44 | $411.08 million | $4.95 | 22.26 |
| Phillips Edison & Company, Inc. | $726.59 million | 6.88 | $111.30 million | $1.44 | 26.97 |
Federal Realty Investment Trust has higher revenue and earnings than Phillips Edison & Company, Inc.. Federal Realty Investment Trust is trading at a lower price-to-earnings ratio than Phillips Edison & Company, Inc., indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Federal Realty Investment Trust has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Phillips Edison & Company, Inc. has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.
Dividends
Federal Realty Investment Trust pays an annual dividend of $4.64 per share and has a dividend yield of 4.2%. Phillips Edison & Company, Inc. pays an annual dividend of $1.38 per share and has a dividend yield of 3.6%. Federal Realty Investment Trust pays out 93.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Phillips Edison & Company, Inc. pays out 95.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Federal Realty Investment Trust has raised its dividend for 58 consecutive years and Phillips Edison & Company, Inc. has raised its dividend for 1 consecutive years. Federal Realty Investment Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Ratings
This is a breakdown of current ratings for Federal Realty Investment Trust and Phillips Edison & Company, Inc., as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Federal Realty Investment Trust | 0 | 7 | 9 | 1 | 2.65 |
| Phillips Edison & Company, Inc. | 0 | 7 | 3 | 0 | 2.30 |
Federal Realty Investment Trust currently has a consensus price target of $124.62, suggesting a potential upside of 13.10%. Phillips Edison & Company, Inc. has a consensus price target of $43.20, suggesting a potential upside of 11.25%. Given Federal Realty Investment Trust’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Federal Realty Investment Trust is more favorable than Phillips Edison & Company, Inc..
Summary
Federal Realty Investment Trust beats Phillips Edison & Company, Inc. on 16 of the 18 factors compared between the two stocks.
About Federal Realty Investment Trust
Federal Realty Investment Trust is an equity real estate investment trust, which engages in the provision of ownership, management, and redevelopment of retail and mixed-use properties located primarily in communities where demand exceeds supply in strategically selected metropolitan markets. The company was founded in 1962 and is headquartered in North Bethesda, MD.
About Phillips Edison & Company, Inc.
Phillips Edison & Co., Inc. is a real estate investment trust, which engages in the ownership and operation of shopping centers. It also offers an investment management business providing property management and advisory services. Its portfolio consists of well-occupied, grocery-anchored neighborhood and community shopping centers having a mix of national, regional, and local retailers offering necessity-based goods and services. The company was founded by Jeffrey S. Edison and Michael C. Phillips in 1991 and is headquartered in Cincinnati, OH.
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