CTO Realty Growth (NYSE:CTO) vs. Acadia Realty Trust (NYSE:AKR) Financial Review

Acadia Realty Trust (NYSE:AKR) and CTO Realty Growth (NYSE:CTO) are both real estate companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, dividends and profitability.

Dividends

Acadia Realty Trust pays an annual dividend of $0.80 per share and has a dividend yield of 3.8%. CTO Realty Growth pays an annual dividend of $1.52 per share and has a dividend yield of 7.0%. Acadia Realty Trust pays out 235.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CTO Realty Growth pays out 111.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Acadia Realty Trust has increased its dividend for 2 consecutive years. CTO Realty Growth is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Acadia Realty Trust and CTO Realty Growth, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Acadia Realty Trust	0	2	5	1	2.88
CTO Realty Growth	0	0	5	2	3.29

Acadia Realty Trust presently has a consensus price target of $24.20, suggesting a potential upside of 14.96%. CTO Realty Growth has a consensus price target of $24.50, suggesting a potential upside of 12.03%. Given Acadia Realty Trust’s higher probable upside, analysts plainly believe Acadia Realty Trust is more favorable than CTO Realty Growth.

Earnings and Valuation

This table compares Acadia Realty Trust and CTO Realty Growth”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Acadia Realty Trust	$410.76 million	7.04	$16.90 million	$0.34	61.91
CTO Realty Growth	$149.54 million	5.48	$10.09 million	$1.36	16.08

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

Institutional & Insider Ownership

97.7% of Acadia Realty Trust shares are owned by institutional investors. Comparatively, 67.2% of CTO Realty Growth shares are owned by institutional investors. 3.1% of Acadia Realty Trust shares are owned by insiders. Comparatively, 4.5% of CTO Realty Growth shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Acadia Realty Trust has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500. Comparatively, CTO Realty Growth has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.

Profitability

This table compares Acadia Realty Trust and CTO Realty Growth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Acadia Realty Trust	12.14%	1.85%	1.04%
CTO Realty Growth	32.63%	8.90%	4.05%

Summary

CTO Realty Growth beats Acadia Realty Trust on 9 of the 17 factors compared between the two stocks.

About Acadia Realty Trust

Acadia Realty Trust is an equity real estate investment trust focused on delivering long-term, profitable growth via its dual Core Portfolio and Fund operating platforms and its disciplined, location-driven investment strategy. Acadia Realty Trust is accomplishing this goal by building a best-in-class core real estate portfolio with meaningful concentrations of assets in the nation's most dynamic corridors; making profitable opportunistic and value-add investments through its series of discretionary, institutional funds; and maintaining a strong balance sheet.

About CTO Realty Growth

CTO Realty Growth, Inc. is a publicly traded real estate investment trust that owns and operates a portfolio of high-quality, retail-based properties located primarily in higher growth markets in the United States. CTO also externally manages and owns a meaningful interest in Alpine Income Property Trust, Inc. (NYSE: PINE), a publicly traded net lease REIT.