Critical Analysis: AmREIT (AMRE) & Weingarten Realty Investors (WRI)
AmREIT (NYSE: AMRE) and Weingarten Realty Investors (NYSE:WRI) are both financials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.
This is a breakdown of current ratings and recommmendations for AmREIT and Weingarten Realty Investors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Weingarten Realty Investors||1||2||1||0||2.00|
Institutional and Insider Ownership
79.2% of Weingarten Realty Investors shares are owned by institutional investors. 7.3% of Weingarten Realty Investors shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares AmREIT and Weingarten Realty Investors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Weingarten Realty Investors||36.86%||12.07%||4.85%|
Valuation & Earnings
This table compares AmREIT and Weingarten Realty Investors’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Weingarten Realty Investors||$549.55 million||7.72||$238.93 million||$1.63||20.26|
Weingarten Realty Investors has higher revenue and earnings than AmREIT. Weingarten Realty Investors is trading at a lower price-to-earnings ratio than AmREIT, indicating that it is currently the more affordable of the two stocks.
Weingarten Realty Investors pays an annual dividend of $1.54 per share and has a dividend yield of 4.7%. AmREIT does not pay a dividend. Weingarten Realty Investors pays out 94.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Weingarten Realty Investors has raised its dividend for 7 consecutive years.
Weingarten Realty Investors beats AmREIT on 11 of the 12 factors compared between the two stocks.
AmREIT Company Profile
AmREIT, Inc. (AmREIT) is a full service, vertically integrated and self-administered real estate investment trust (REIT) that owns, operates, acquires and selectively develops and redevelops primarily neighborhood and community shopping centers located in high-traffic, densely populated, affluent areas with high barriers to entry. The Company’s shopping centers are anchored by national and local retailers, including supermarket chains, drug stores and other necessity-based retailers. In June 2013, AmREIT Inc announced that it has completed the acquisition of Fountain Oaks Shopping Center, a 160,600 square foot Kroger-anchored shopping center in the north Buckhead submarket of Atlanta, Georgia. Effective September 24, 2013, AmREIT Inc, through its AmREIT Realty Investment Corp subsidiary, acquired Woodlake Square Shopping Center, an owner and operator of shopping centers. In August 2014, AmREIT Inc completed the acquisition of Tuxedo Festival Shopping Center.
Weingarten Realty Investors Company Profile
Weingarten Realty Investors is a real estate investment trust (REIT). The Company’s primary business is leasing space to tenants in the shopping centers it owns or leases. The Company also provides property management services. The Company is in the business of owning, managing and developing retail shopping centers. As of December 31, 2016, the Company had owned or operated under long-term leases, either directly or through its interest in real estate joint ventures or partnerships, a total of 220 centers, primarily neighborhood and community shopping centers, which were located in 18 states spanning the country from coast to coast with approximately 44.7 million square feet of gross leasable area. Its centers are located principally in the South, West Coast and Southeast Coast of the United States with concentrations in Arizona, California, Florida and Texas. It also owned interests in 28 parcels of land that totaled approximately 19.8 million square feet, as of December 31, 2016.
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