Washington Prime Group (NYSE: WPG) and Cedar Realty Trust (NYSE:CDR) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.

Profitability

This table compares Washington Prime Group and Cedar Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Washington Prime Group 22.65% 17.36% 3.73%
Cedar Realty Trust 6.58% 2.49% 0.77%

Analyst Recommendations

This is a summary of recent ratings and price targets for Washington Prime Group and Cedar Realty Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Washington Prime Group 1 0 0 0 1.00
Cedar Realty Trust 1 1 4 0 2.50

Cedar Realty Trust has a consensus price target of $6.25, indicating a potential upside of 20.66%. Given Cedar Realty Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Cedar Realty Trust is more favorable than Washington Prime Group.

Dividends

Washington Prime Group pays an annual dividend of $1.00 per share and has a dividend yield of 11.5%. Cedar Realty Trust pays an annual dividend of $0.20 per share and has a dividend yield of 3.9%. Washington Prime Group pays out 108.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cedar Realty Trust pays out -333.3% of its earnings in the form of a dividend.

Volatility and Risk

Washington Prime Group has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, Cedar Realty Trust has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500.

Earnings and Valuation

This table compares Washington Prime Group and Cedar Realty Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Washington Prime Group $819.27 million 1.97 $487.39 million $0.92 9.46
Cedar Realty Trust $147.44 million 2.89 $81.98 million ($0.06) -86.32

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

Institutional & Insider Ownership

95.3% of Washington Prime Group shares are held by institutional investors. Comparatively, 92.1% of Cedar Realty Trust shares are held by institutional investors. 0.3% of Washington Prime Group shares are held by insiders. Comparatively, 4.5% of Cedar Realty Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Washington Prime Group beats Cedar Realty Trust on 9 of the 16 factors compared between the two stocks.

About Washington Prime Group

Washington Prime Group Inc. (WPG Inc.), formerly WP Glimcher Inc., operates as a self-administered and self-managed real estate investment trust (REIT). The Company’s primary business is the ownership, development and management of retail real estate within the United States. The Company owns, develops and manages enclosed retail properties and community centers. As of December 31, 2016, its assets consisted of material interests in 114 shopping centers in the United States, consisting of approximately 63 million square feet of gross leasable area. The Company also owns parcels of land, which can be used for either the development of new shopping centers or the expansion of existing properties. Washington Prime Group, L.P. is the Company’s majority-owned partnership subsidiary that owns, develops and manages, through its affiliates, all of WPG Inc.’s real estate properties and other assets. Its properties include Irving Mall, Lindale Mall, Markland Plaza and Royal Eagle Plaza.

About Cedar Realty Trust

Cedar Realty Trust, Inc. is a real estate investment trust (REIT). The Company focuses on ownership and operation of grocery-anchored shopping centers straddling the Washington District of Columbia (DC) to Boston corridor. As of December 31, 2016, the Company owned and managed a portfolio of 61 operating properties (excluding properties held for sale) totaling approximately 9.1 million square feet of gross leasable area (GLA). The Company focuses its investment activities on grocery-anchored shopping centers. The Company’s properties portfolio comprises 26 properties in Pennsylvania, eight properties in Massachusetts, seven properties in Connecticut, seven properties in Maryland / Washington, D.C, eight properties in Virginia, four properties in New Jersey and one property in New York. The Company’s 106 are going to expire in the year 2017. The Company conducts all of its businesses through the Cedar Realty Trust Partnership L.P. (the Operating Partnership).

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