Comparing Federal Realty Investment Trust (NYSE:FRT) & Kite Realty Group Trust (NYSE:KRG)

Federal Realty Investment Trust (NYSE:FRT) and Kite Realty Group Trust (NYSE:KRG) are both mid-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.

Analyst Recommendations

This is a summary of recent recommendations for Federal Realty Investment Trust and Kite Realty Group Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Federal Realty Investment Trust	0	10	5	1	2.44
Kite Realty Group Trust	0	7	2	0	2.22

Federal Realty Investment Trust presently has a consensus target price of $107.96, indicating a potential upside of 10.25%. Kite Realty Group Trust has a consensus target price of $25.88, indicating a potential upside of 13.31%. Given Kite Realty Group Trust’s higher probable upside, analysts clearly believe Kite Realty Group Trust is more favorable than Federal Realty Investment Trust.

Earnings and Valuation

This table compares Federal Realty Investment Trust and Kite Realty Group Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Federal Realty Investment Trust	$1.25 billion	6.74	$295.21 million	$3.94	24.85
Kite Realty Group Trust	$856.79 million	5.77	$4.07 million	$0.64	35.68

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

Profitability

This table compares Federal Realty Investment Trust and Kite Realty Group Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Federal Realty Investment Trust	28.01%	11.19%	4.04%
Kite Realty Group Trust	16.34%	4.23%	2.03%

Dividends

Federal Realty Investment Trust pays an annual dividend of $4.52 per share and has a dividend yield of 4.6%. Kite Realty Group Trust pays an annual dividend of $1.16 per share and has a dividend yield of 5.1%. Federal Realty Investment Trust pays out 114.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kite Realty Group Trust pays out 181.2% 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 and Kite Realty Group Trust has raised its dividend for 4 consecutive years.

Risk & Volatility

Federal Realty Investment Trust has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Kite Realty Group Trust has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.

Institutional & Insider Ownership

93.9% of Federal Realty Investment Trust shares are owned by institutional investors. Comparatively, 90.8% of Kite Realty Group Trust shares are owned by institutional investors. 1.0% of Federal Realty Investment Trust shares are owned by company insiders. Comparatively, 2.0% of Kite Realty Group Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Federal Realty Investment Trust beats Kite Realty Group Trust on 14 of the 18 factors compared between the two stocks.

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.

About Kite Realty Group Trust

Kite Realty Group Trust (NYSE: KRG) is a real estate investment trust (REIT) headquartered in Indianapolis, IN that is one of the largest publicly traded owners and operators of open-air shopping centers and mixed-use assets. The Company’s primarily grocery-anchored portfolio is located in high-growth Sun Belt and select strategic gateway markets. The combination of necessity-based grocery-anchored neighborhood and community centers, along with vibrant mixed-use assets makes the KRG portfolio an ideal mix for both retailers and consumers. Publicly listed since 2004, KRG has nearly 60 years of experience in developing, constructing and operating real estate. Using operational, investment, development, and redevelopment expertise, KRG continuously optimizes its portfolio to maximize value and return to shareholders. As of December 31, 2023, the Company owned interests in 180 U.S. open-air shopping centers and mixed-use assets, comprising approximately 28.1 million square feet of gross leasable space.