Macerich (NYSE:MAC – Get Free Report) and Essential Properties Realty Trust (NYSE:EPRT – Get Free Report) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.
Profitability
This table compares Macerich and Essential Properties Realty Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Macerich | -41.33% | -15.15% | -4.89% |
| Essential Properties Realty Trust | 44.48% | 6.20% | 3.78% |
Analyst Ratings
This is a breakdown of recent ratings and target prices for Macerich and Essential Properties Realty Trust, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Macerich | 2 | 5 | 5 | 0 | 2.25 |
| Essential Properties Realty Trust | 0 | 3 | 8 | 0 | 2.73 |
Insider & Institutional Ownership
87.4% of Macerich shares are held by institutional investors. Comparatively, 97.0% of Essential Properties Realty Trust shares are held by institutional investors. 0.5% of Macerich shares are held by company insiders. Comparatively, 0.8% of Essential Properties Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk & Volatility
Macerich has a beta of 2.27, meaning that its share price is 127% more volatile than the S&P 500. Comparatively, Essential Properties Realty Trust has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.
Valuation and Earnings
This table compares Macerich and Essential Properties Realty Trust”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Macerich | $918.20 million | 5.15 | -$194.12 million | ($1.75) | -10.69 |
| Essential Properties Realty Trust | $449.61 million | 13.56 | $203.00 million | $1.18 | 26.08 |
Essential Properties Realty Trust has lower revenue, but higher earnings than Macerich. Macerich is trading at a lower price-to-earnings ratio than Essential Properties Realty Trust, indicating that it is currently the more affordable of the two stocks.
Dividends
Macerich pays an annual dividend of $0.68 per share and has a dividend yield of 3.6%. Essential Properties Realty Trust pays an annual dividend of $1.20 per share and has a dividend yield of 3.9%. Macerich pays out -38.9% of its earnings in the form of a dividend. Essential Properties Realty Trust pays out 101.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Essential Properties Realty Trust has raised its dividend for 6 consecutive years. Essential Properties Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Essential Properties Realty Trust beats Macerich on 14 of the 17 factors compared between the two stocks.
About Macerich
Macerich is a fully integrated, self-managed and self-administered real estate investment trust (REIT). As a leading owner, operator and developer of high-quality retail real estate in densely populated and attractive U.S. markets, Macerich’s portfolio is concentrated in California, the Pacific Northwest, Phoenix/Scottsdale, and the Metro New York to Washington, D.C. corridor. Developing and managing properties that serve as community cornerstones, Macerich currently owns 47 million square feet of real estate consisting primarily of interests in 44 regional town centers. Macerich is firmly dedicated to advancing environmental goals, social good and sound corporate governance. A recognized leader in sustainability, Macerich has achieved a #1 Global Real Estate Sustainability Benchmark (GRESB) ranking for the North American retail sector for nine consecutive years (2015-2023).
About Essential Properties Realty Trust
Essential Properties Realty Trust, Inc., a real estate company, acquires, owns, and manages single-tenant properties in the United States. The company leases its properties to middle-market companies, such as restaurants, car washes, automotive services, medical and dental services, convenience stores, equipment rental, entertainment, early childhood education, grocery, and health and fitness on a long-term basis. As of December 31, 2021, it had a portfolio of 1, 451 properties. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 2016 and is headquartered in Princeton, New Jersey.
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