Seritage Growth Properties (NYSE: SRG) and EPR Properties (NYSE:EPR) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Seritage Growth Properties and EPR Properties, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Seritage Growth Properties 1 1 1 0 2.00
EPR Properties 0 3 1 0 2.25

Seritage Growth Properties currently has a consensus target price of $43.00, suggesting a potential downside of 9.68%. EPR Properties has a consensus target price of $79.50, suggesting a potential upside of 12.86%. Given EPR Properties’ stronger consensus rating and higher probable upside, analysts clearly believe EPR Properties is more favorable than Seritage Growth Properties.

Volatility and Risk

Seritage Growth Properties has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, EPR Properties has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.

Dividends

Seritage Growth Properties pays an annual dividend of $1.00 per share and has a dividend yield of 2.1%. EPR Properties pays an annual dividend of $4.08 per share and has a dividend yield of 5.8%. Seritage Growth Properties pays out -42.2% of its earnings in the form of a dividend. EPR Properties pays out 120.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EPR Properties has raised its dividend for 6 consecutive years. EPR Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Seritage Growth Properties and EPR Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Seritage Growth Properties -31.23% -5.52% -2.83%
EPR Properties 46.90% 10.51% 4.89%

Institutional and Insider Ownership

91.9% of Seritage Growth Properties shares are held by institutional investors. Comparatively, 86.5% of EPR Properties shares are held by institutional investors. 9.8% of Seritage Growth Properties shares are held by company insiders. Comparatively, 1.5% of EPR Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Seritage Growth Properties and EPR Properties’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Seritage Growth Properties $248.20 million 6.51 $163.67 million ($2.37) -20.09
EPR Properties $526.01 million 9.86 $461.10 million $3.40 20.72

EPR Properties has higher revenue and earnings than Seritage Growth Properties. Seritage Growth Properties is trading at a lower price-to-earnings ratio than EPR Properties, indicating that it is currently the more affordable of the two stocks.

Summary

EPR Properties beats Seritage Growth Properties on 11 of the 15 factors compared between the two stocks.

About Seritage Growth Properties

Seritage Growth Properties (Seritage) is a self-administered and self-managed real estate investment trust. The Company is engaged in the acquisition, ownership, development, redevelopment, management and leasing of diversified retail real estate throughout the United States. Its assets are held by and its operations are primarily conducted through, directly or indirectly, Seritage Growth Properties, L.P. (Operating Partnership). As of December 31, 2016, the Company’s portfolio included approximately 42.2 million square feet of gross leasable area (GLA), consisting of 235 owned properties totaling over 36.8 million square feet of GLA across 49 states and Puerto Rico, and interests in 31 joint venture properties totaling over 5.4 million square feet of GLA across 17 states. As of December 31, 2016, it included over 3,000 acres of land or approximately 13 acres per site for its owned properties. Its properties are primarily located in areas, including in California, Florida and Texas.

About EPR Properties

EPR Properties is a specialty real estate investment trust. The Company’s investment portfolio includes primarily entertainment, education and recreation properties. The Company’s segments include Entertainment, Education, Recreation and Other. The Entertainment segment consists of investments in megaplex theatres, entertainment retail centers, family entertainment centers and other retail parcels. The Education segment consists of investments in public charter schools, early education centers and K-12 private schools. The Recreation segment consists of investments in ski areas, waterparks, golf entertainment complexes and other recreation. The Other segment consists primarily of land under ground lease, property under development and land held for development. As of December 31, 2016, the Company’s owned real estate portfolio of megaplex theatres consisted of approximately 10.6 million square feet.

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