Critical Contrast: DDR Corp. (DDR) and Its Rivals
DDR Corp. (NYSE: DDR) is one of 34 public companies in the “Retail REITs” industry, but how does it compare to its competitors? We will compare DDR Corp. to similar businesses based on the strength of its earnings, valuation, profitability, risk, analyst recommendations, institutional ownership and dividends.
This is a breakdown of current recommendations and price targets for DDR Corp. and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|DDR Corp. Competitors||262||1219||1189||24||2.36|
DDR Corp. currently has a consensus target price of $13.50, indicating a potential upside of 47.38%. As a group, “Retail REITs” companies have a potential upside of 14.55%. Given DDR Corp.’s higher possible upside, analysts plainly believe DDR Corp. is more favorable than its competitors.
Valuation and Earnings
This table compares DDR Corp. and its competitors gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|DDR Corp.||$963.85 million||$622.40 million||-45.80|
|DDR Corp. Competitors||$727.99 million||$483.06 million||28.49|
DDR Corp. has higher revenue and earnings than its competitors. DDR Corp. is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
DDR Corp. pays an annual dividend of $0.76 per share and has a dividend yield of 8.3%. DDR Corp. pays out -380.0% of its earnings in the form of a dividend. As a group, “Retail REITs” companies pay a dividend yield of 4.3% and pay out 143.3% of their earnings in the form of a dividend. DDR Corp. has increased its dividend for 6 consecutive years. DDR Corp. is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
Risk & Volatility
DDR Corp. has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, DDR Corp.’s competitors have a beta of 0.66, meaning that their average share price is 34% less volatile than the S&P 500.
Insider and Institutional Ownership
80.2% of DDR Corp. shares are owned by institutional investors. Comparatively, 86.2% of shares of all “Retail REITs” companies are owned by institutional investors. 16.1% of DDR Corp. shares are owned by insiders. Comparatively, 11.3% of shares of all “Retail REITs” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares DDR Corp. and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|DDR Corp. Competitors||21.35%||5.12%||2.89%|
DDR Corp. competitors beat DDR Corp. on 8 of the 15 factors compared.
About DDR Corp.
DDR Corp. is a self-administered and self-managed real estate investment trust. It operates through two segments: shopping centers and loan investments. It is in the business of acquiring, owning, developing, redeveloping, expanding, leasing and managing shopping centers. As of December 31, 2016, it owned and managed approximately 106 million total square feet of gross leasable area (GLA). As of December 31, 2016, the portfolio properties included 319 shopping centers (including 152 centers owned through joint ventures). As of December 31, 2016, the portfolio properties also included over 650 acres of undeveloped land, including parcels located adjacent to certain of the shopping centers. As of December 31, 2016, the portfolio properties aggregated to 75.8 million square feet of Company-owned GLA located in 35 states, plus Puerto Rico. These centers are in the Southeast and Midwest, with significant concentrations in Florida, Georgia, Ohio and North Carolina, as well as Puerto Rico.
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