Comparing Acadia Realty Trust (NYSE:AKR) & Saul Centers (NYSE:BFS)

Saul Centers (NYSE:BFS) and Acadia Realty Trust (NYSE:AKR) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Insider and Institutional Ownership

45.6% of Saul Centers shares are owned by institutional investors. Comparatively, 99.9% of Acadia Realty Trust shares are owned by institutional investors. 51.5% of Saul Centers shares are owned by company insiders. Comparatively, 2.7% of Acadia Realty 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.

Earnings and Valuation

This table compares Saul Centers and Acadia Realty Trust’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Saul Centers $225.21 million 4.63 $40.38 million $2.88 15.35
Acadia Realty Trust $255.48 million 7.14 -$8.76 million $1.02 20.22

Saul Centers has higher earnings, but lower revenue than Acadia Realty Trust. Saul Centers is trading at a lower price-to-earnings ratio than Acadia Realty Trust, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings for Saul Centers and Acadia Realty Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Saul Centers 0 0 2 0 3.00
Acadia Realty Trust 0 1 4 0 2.80

Saul Centers presently has a consensus target price of $50.50, indicating a potential upside of 14.25%. Acadia Realty Trust has a consensus target price of $20.33, indicating a potential downside of 1.39%. Given Saul Centers’ stronger consensus rating and higher probable upside, equities analysts clearly believe Saul Centers is more favorable than Acadia Realty Trust.

Profitability

This table compares Saul Centers and Acadia Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Saul Centers 17.88% 14.51% 2.46%
Acadia Realty Trust -4.10% -0.52% -0.26%

Volatility & Risk

Saul Centers has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Acadia Realty Trust has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500.

Dividends

Saul Centers pays an annual dividend of $2.20 per share and has a dividend yield of 5.0%. Acadia Realty Trust pays an annual dividend of $0.60 per share and has a dividend yield of 2.9%. Saul Centers pays out 76.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Acadia Realty Trust pays out 58.8% of its earnings in the form of a dividend.

Summary

Saul Centers beats Acadia Realty Trust on 10 of the 16 factors compared between the two stocks.

Saul Centers Company Profile

Saul Centers, Inc. is a real estate investment trust, which engages inthe ownership, management, and development of income producing properties. It operates through the Shopping Centers and Mixed-Use Properties business segments. The Shopping Centers segment consists community and neighborhood shopping centers which are anchored by supermarkets, discount department stores, and drug stores. The Mixed-Use Properties segment comprises of facilities which are located in differing commercial environments with distinctive demographic characteristics, and are geographically removed from one another. The company was founded on June 10, 1993 and is headquartered in Bethesda, MD.

Acadia Realty Trust Company Profile

Acadia Realty Trust is a real estate investment trust, which engages in delivering operating platforms and investment strategy. It operates through the following business segments: Core Portfolio, Funds, and Structured Financing. The Core Portfolio segment consists of retail properties. The Funds segment handles retail real estate. The Structured Financing segment involves earnings and expenses related to notes and mortgages receivable which are held within the Core Portfolio or the Funds. The company was founded by Kenneth F. Bernstein in 1964 and is headquartered in Rye, NY.

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