Financial Analysis: Urban Edge Properties (UE) and Taubman Centers (TCO)
Urban Edge Properties (NYSE: UE) and Taubman Centers (NYSE:TCO) are both mid-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.
This is a summary of current ratings and price targets for Urban Edge Properties and Taubman Centers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Urban Edge Properties||1||0||0||0||1.00|
Urban Edge Properties presently has a consensus target price of $25.00, suggesting a potential upside of 4.78%. Taubman Centers has a consensus target price of $70.60, suggesting a potential upside of 43.67%. Given Taubman Centers’ stronger consensus rating and higher possible upside, analysts clearly believe Taubman Centers is more favorable than Urban Edge Properties.
Valuation & Earnings
This table compares Urban Edge Properties and Taubman Centers’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Urban Edge Properties||$379.02 million||6.77||$230.14 million||$1.01||23.62|
|Taubman Centers||$606.47 million||4.92||$311.97 million||$1.29||38.09|
Taubman Centers has higher revenue and earnings than Urban Edge Properties. Urban Edge Properties is trading at a lower price-to-earnings ratio than Taubman Centers, indicating that it is currently the more affordable of the two stocks.
This table compares Urban Edge Properties and Taubman Centers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Urban Edge Properties||27.04%||16.72%||4.87%|
Volatility & Risk
Urban Edge Properties has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500. Comparatively, Taubman Centers has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500.
Insider and Institutional Ownership
87.2% of Urban Edge Properties shares are owned by institutional investors. Comparatively, 98.5% of Taubman Centers shares are owned by institutional investors. 4.7% of Urban Edge Properties shares are owned by company insiders. Comparatively, 31.2% of Taubman Centers 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.
Urban Edge Properties pays an annual dividend of $0.88 per share and has a dividend yield of 3.7%. Taubman Centers pays an annual dividend of $2.50 per share and has a dividend yield of 5.1%. Urban Edge Properties pays out 87.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Taubman Centers pays out 193.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Taubman Centers has increased its dividend for 7 consecutive years. Taubman Centers is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Taubman Centers beats Urban Edge Properties on 11 of the 17 factors compared between the two stocks.
Urban Edge Properties Company Profile
Urban Edge Properties is a real estate investment trust. The Company is focused on managing, developing, redeveloping and acquiring retail real estate in urban communities, in the New York metropolitan region. Urban Edge Properties LP (UELP or the Operating Partnership) serves as its partnership subsidiary and owns, through affiliates, all of its real estate properties and other assets. As of December 31, 2016, its portfolio consisted of 79 shopping centers, three malls and a warehouse park adjacent to one of its centers totaling 14.8 million square feet. As of December 31, 2016, it leased 19 properties under ground and/or building leases. As of December 31, 2016, it had approximately 1,200 leases. Its shopping centers and malls are located at California, Connecticut, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, South Carolina, Virginia and Puerto Rico. Its shopping centers and malls include Signal Hill, Vallejo, Walnut Creek, Newington and others.
Taubman Centers Company Profile
Taubman Centers, Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company’s segment is focused on owning, developing and managing regional shopping centers. The Taubman Realty Group Limited Partnership (the Operating Partnership or TRG) is majority-owned partnership subsidiary of the Company that owns direct or indirect interests in all of its real estate properties. The Company owns, leases, acquires, disposes of, develops, expands and manages regional and super-regional shopping centers and interests therein. Its owned portfolio of operating centers as of December 31, 2016 consisted of 23 urban and suburban shopping centers operating in 11 the United States states, Puerto Rico, South Korea, and China. The consolidated businesses consist of shopping centers and entities that are controlled by ownership or contractual agreements, The Taubman Company LLC (Manager), and Taubman Properties Asia LLC and its subsidiaries (Taubman Asia).
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