Douglas Emmett (NYSE:DEI) and RPT Realty (NYSE:RPT) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.
Risk & Volatility
Douglas Emmett has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, RPT Realty has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.
This is a breakdown of current ratings and target prices for Douglas Emmett and RPT Realty, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Douglas Emmett currently has a consensus target price of $40.50, indicating a potential downside of 1.79%. RPT Realty has a consensus target price of $12.75, indicating a potential upside of 7.41%. Given RPT Realty’s higher probable upside, analysts plainly believe RPT Realty is more favorable than Douglas Emmett.
Douglas Emmett pays an annual dividend of $1.04 per share and has a dividend yield of 2.5%. RPT Realty pays an annual dividend of $0.88 per share and has a dividend yield of 7.4%. Douglas Emmett pays out 51.5% of its earnings in the form of a dividend. RPT Realty pays out 65.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Douglas Emmett has increased its dividend for 8 consecutive years.
Institutional & Insider Ownership
92.5% of Douglas Emmett shares are owned by institutional investors. 16.2% of Douglas Emmett shares are owned by company insiders. Comparatively, 3.6% of RPT Realty shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Douglas Emmett and RPT Realty’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Douglas Emmett||$881.32 million||8.20||$116.08 million||$2.02||20.42|
|RPT Realty||$260.62 million||3.66||$17.62 million||$1.35||8.79|
Douglas Emmett has higher revenue and earnings than RPT Realty. RPT Realty is trading at a lower price-to-earnings ratio than Douglas Emmett, indicating that it is currently the more affordable of the two stocks.
This table compares Douglas Emmett and RPT Realty’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Douglas Emmett beats RPT Realty on 15 of the 17 factors compared between the two stocks.
About Douglas Emmett
Douglas Emmett, Inc. (DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities.
About RPT Realty
RPT Realty owns and operates a national portfolio of open-air shopping destinations principally located in top U.S. markets. The Company's locally-curated consumer experiences reflect the lifestyles of its diverse neighborhoods and match the modern expectations of its retail partners. The Company is a fully integrated and self-administered REIT publicly traded on the New York Stock Exchange under the ticker symbol RPT. As of March 31, 2019, the Company's portfolio consisted of 49 shopping centers (including 1 shopping center owned through a joint venture) representing 11.9 million square feet. As of March 31, 2019, the Company's aggregate portfolio was 94.8% leased.
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