Head-To-Head Contrast: Urban Edge Properties (UE) versus Ramco-Gershenson Properties Trust (RPT)

Urban Edge Properties (NYSE: UE) and Ramco-Gershenson Properties Trust (NYSE:RPT) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.

Institutional & Insider Ownership

84.0% of Urban Edge Properties shares are owned by institutional investors. Comparatively, 98.5% of Ramco-Gershenson Properties Trust shares are owned by institutional investors. 4.7% of Urban Edge Properties shares are owned by company insiders. Comparatively, 3.7% of Ramco-Gershenson Properties Trust 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.

Analyst Recommendations

This is a summary of current recommendations and price targets for Urban Edge Properties and Ramco-Gershenson Properties Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Urban Edge Properties 1 1 0 0 1.50
Ramco-Gershenson Properties Trust 1 6 4 0 2.27

Urban Edge Properties currently has a consensus price target of $25.00, indicating a potential upside of 0.93%. Ramco-Gershenson Properties Trust has a consensus price target of $14.94, indicating a potential upside of 5.49%. Given Ramco-Gershenson Properties Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Ramco-Gershenson Properties Trust is more favorable than Urban Edge Properties.

Profitability

This table compares Urban Edge Properties and Ramco-Gershenson Properties Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Urban Edge Properties 25.53% 13.43% 4.35%
Ramco-Gershenson Properties Trust 20.75% 6.96% 2.55%

Valuation & Earnings

This table compares Urban Edge Properties and Ramco-Gershenson Properties Trust’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Urban Edge Properties $325.98 million 8.65 $90.81 million $0.97 25.54
Ramco-Gershenson Properties Trust $260.93 million 4.31 $59.66 million $0.57 24.84

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

Dividends

Urban Edge Properties pays an annual dividend of $0.88 per share and has a dividend yield of 3.6%. Ramco-Gershenson Properties Trust pays an annual dividend of $0.88 per share and has a dividend yield of 6.2%. Urban Edge Properties pays out 90.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ramco-Gershenson Properties Trust pays out 154.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Urban Edge Properties has raised its dividend for 4 consecutive years.

Risk and Volatility

Urban Edge Properties has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, Ramco-Gershenson Properties Trust has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.

Summary

Urban Edge Properties beats Ramco-Gershenson Properties Trust on 11 of the 17 factors compared between the two stocks.

About Urban Edge Properties

Urban Edge Properties is a real estate investment trust. The Company is focused on managing, developing, redeveloping and acquiring retail real estate in urban communities, in the New York metropolitan region. Urban Edge Properties LP (UELP or the Operating Partnership) serves as its partnership subsidiary and owns, through affiliates, all of its real estate properties and other assets. As of December 31, 2016, its portfolio consisted of 79 shopping centers, three malls and a warehouse park adjacent to one of its centers totaling 14.8 million square feet. As of December 31, 2016, it leased 19 properties under ground and/or building leases. As of December 31, 2016, it had approximately 1,200 leases. Its shopping centers and malls are located at California, Connecticut, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, South Carolina, Virginia and Puerto Rico. Its shopping centers and malls include Signal Hill, Vallejo, Walnut Creek, Newington and others.

About Ramco-Gershenson Properties Trust

Ramco-Gershenson Properties Trust is an equity real estate investment trust. The Company’s primary business is the ownership, management, redevelopment, development and operation of retail shopping centers. As of December 31, 2016, it owned and managed multi-anchored shopping centers in 12 metropolitan markets in the United States. It conducts its business through its operating partnership, Ramco-Gershenson Properties, L.P. It invests in large, multi-anchored shopping centers that include national chain store tenants and supermarket tenants. National chain anchor tenants in its centers include, among others, Bed Bath and Beyond, Dick’s Sporting Goods, and Home Depot. Supermarket anchor tenants in its centers include, among others, Publix Super Market, Whole Foods, Kroger and Sprouts. Its shopping centers are located in metropolitan markets, such as Metro Detroit, Southeast Florida, Greater Denver, Cincinnati, St. Louis, Jacksonville, Tampa/Lakeland, Milwaukee, Chicago and Atlanta.

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