Critical Analysis: Curbline Properties (NYSE:CURB) vs. InvenTrust Properties (NYSE:IVT)

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Curbline Properties and InvenTrust Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Curbline Properties	0	4	5	0	2.56
InvenTrust Properties	0	1	5	1	3.00

Curbline Properties presently has a consensus target price of $31.11, suggesting a potential upside of 3.60%. InvenTrust Properties has a consensus target price of $35.14, suggesting a potential upside of 5.72%. Given InvenTrust Properties’ stronger consensus rating and higher possible upside, analysts plainly believe InvenTrust Properties is more favorable than Curbline Properties.

Profitability

This table compares Curbline Properties and InvenTrust Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Curbline Properties	13.10%	1.50%	1.13%
InvenTrust Properties	4.80%	0.85%	0.53%

Earnings and Valuation

This table compares Curbline Properties and InvenTrust Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Curbline Properties	$182.89 million	18.89	$39.83 million	$0.27	111.22
InvenTrust Properties	$299.17 million	8.66	$111.42 million	$0.20	166.20

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

Dividends

Curbline Properties pays an annual dividend of $0.68 per share and has a dividend yield of 2.3%. InvenTrust Properties pays an annual dividend of $1.00 per share and has a dividend yield of 3.0%. Curbline Properties pays out 251.9% 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 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. InvenTrust Properties has increased its dividend for 4 consecutive years. InvenTrust Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

61.7% of InvenTrust Properties shares are owned by institutional investors. 8.7% of Curbline Properties shares are owned by company insiders. Comparatively, 0.7% of InvenTrust Properties shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Curbline Properties has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500. Comparatively, InvenTrust Properties has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.

Summary

InvenTrust Properties beats Curbline Properties on 10 of the 17 factors compared between the two stocks.

About Curbline Properties

Curbline Properties Corp. is a real estate investment trust which is an owner and manager of convenience shopping centers positioned on the curbline of well-trafficked intersections and major vehicular corridors in suburban. Curbline Properties Corp. is based in NEW YORK.

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.