Weyerhaeuser (NYSE:WY – Get Free Report) and Federal Realty Investment Trust (NYSE:FRT – Get Free Report) are both construction companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.
Insider and Institutional Ownership
83.0% of Weyerhaeuser shares are held by institutional investors. Comparatively, 93.9% of Federal Realty Investment Trust shares are held by institutional investors. 0.3% of Weyerhaeuser shares are held by company insiders. Comparatively, 1.0% of Federal Realty Investment Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Weyerhaeuser and Federal Realty Investment Trust, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Weyerhaeuser | 0 | 5 | 3 | 0 | 2.38 |
| Federal Realty Investment Trust | 0 | 2 | 9 | 0 | 2.82 |
Valuation and Earnings
This table compares Weyerhaeuser and Federal Realty Investment Trust’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Weyerhaeuser | $7.53 billion | 2.93 | $839.00 million | $1.10 | 27.52 |
| Federal Realty Investment Trust | $1.13 billion | 8.58 | $236.99 million | $2.81 | 41.68 |
Weyerhaeuser has higher revenue and earnings than Federal Realty Investment Trust. Weyerhaeuser is trading at a lower price-to-earnings ratio than Federal Realty Investment Trust, indicating that it is currently the more affordable of the two stocks.
Dividends
Weyerhaeuser pays an annual dividend of $0.80 per share and has a dividend yield of 2.6%. Federal Realty Investment Trust pays an annual dividend of $4.36 per share and has a dividend yield of 3.7%. Weyerhaeuser pays out 72.7% of its earnings in the form of a dividend. Federal Realty Investment Trust pays out 155.2% 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. Federal Realty Investment Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares Weyerhaeuser and Federal Realty Investment Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Weyerhaeuser | 9.89% | 6.19% | 3.69% |
| Federal Realty Investment Trust | 24.69% | 10.07% | 3.45% |
Volatility and Risk
Weyerhaeuser has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, Federal Realty Investment Trust has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500.
Summary
Federal Realty Investment Trust beats Weyerhaeuser on 11 of the 17 factors compared between the two stocks.
About Weyerhaeuser
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in North America. Our company is a real estate investment trust. In 2022, we generated $10.2 billion in net sales and employed approximately 9,200 people who serve customers worldwide. Our common stock trades on the New York Stock Exchange under the symbol WY.
About Federal Realty Investment Trust
Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets from Washington, D.C. to Boston as well as San Francisco and Los Angeles. Founded in 1962, Federal Realty's mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California, Pike & Rose in North Bethesda, Maryland and Assembly Row in Somerville, Massachusetts. These unique and vibrant environments that combine shopping, dining, living and working provide a destination experience valued by their respective communities. Federal Realty's 102 properties include approximately 3,300 tenants, in 26 million commercial square feet, and approximately 3,100 residential units. Federal Realty has increased its quarterly dividends to its shareholders for 56 consecutive years, the longest record in the REIT industry. Federal Realty is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT.
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