Reviewing Federal Realty Investment Trust (NYSE:FRT) and InvenTrust Properties (NYSE:IVT)

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

Institutional & Insider Ownership

61.7% of InvenTrust Properties shares are held by institutional investors. Comparatively, 93.9% of Federal Realty Investment Trust shares are held by institutional investors. 0.7% of InvenTrust Properties shares are held by insiders. Comparatively, 1.1% of Federal Realty Investment Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares InvenTrust Properties and Federal Realty Investment Trust’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%
Federal Realty Investment Trust	32.67%	13.65%	4.83%

Volatility and Risk

InvenTrust Properties has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, Federal Realty Investment Trust has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Dividends

InvenTrust Properties pays an annual dividend of $1.00 per share and has a dividend yield of 3.1%. Federal Realty Investment Trust pays an annual dividend of $4.52 per share and has a dividend yield of 3.9%. 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. Federal Realty Investment Trust pays out 91.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. InvenTrust Properties has raised its dividend for 4 consecutive years and Federal Realty Investment Trust has raised its dividend for 58 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 and recommmendations for InvenTrust Properties and Federal Realty Investment Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InvenTrust Properties	0	1	4	1	3.00
Federal Realty Investment Trust	0	7	9	1	2.65

InvenTrust Properties currently has a consensus price target of $35.67, indicating a potential upside of 11.25%. Federal Realty Investment Trust has a consensus price target of $128.75, indicating a potential upside of 12.16%. Given Federal Realty Investment Trust’s higher probable upside, analysts plainly believe Federal Realty Investment Trust is more favorable than InvenTrust Properties.

Valuation and Earnings

This table compares InvenTrust Properties and Federal Realty Investment Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InvenTrust Properties	$299.17 million	8.36	$111.42 million	$0.20	160.30
Federal Realty Investment Trust	$1.28 billion	7.75	$411.08 million	$4.95	23.19

Federal Realty Investment Trust has higher revenue and earnings than InvenTrust Properties. Federal Realty Investment Trust 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

Federal Realty Investment Trust beats InvenTrust Properties on 14 of the 17 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 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.