Alexander’s (ALX) vs. Regency Centers (REG) Critical Comparison

Alexander’s (NYSE:ALX) and Regency Centers (NYSE:REG) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Profitability

This table compares Alexander’s and Regency Centers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alexander’s 17.47% 22.14% 4.44%
Regency Centers 23.19% 3.86% 2.29%

Dividends

Alexander’s pays an annual dividend of $18.00 per share and has a dividend yield of 4.9%. Regency Centers pays an annual dividend of $2.22 per share and has a dividend yield of 3.3%. Regency Centers pays out 60.2% of its earnings in the form of a dividend. Alexander’s has raised its dividend for 9 consecutive years and Regency Centers has raised its dividend for 5 consecutive years. Alexander’s is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

33.3% of Alexander’s shares are held by institutional investors. Comparatively, 93.9% of Regency Centers shares are held by institutional investors. 26.3% of Alexander’s shares are held by company insiders. Comparatively, 1.1% of Regency Centers shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Alexander’s and Regency Centers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alexander’s 0 1 0 0 2.00
Regency Centers 0 4 8 0 2.67

Alexander’s currently has a consensus target price of $410.00, indicating a potential upside of 12.39%. Regency Centers has a consensus target price of $68.83, indicating a potential upside of 3.86%. Given Alexander’s’ higher probable upside, research analysts plainly believe Alexander’s is more favorable than Regency Centers.

Volatility & Risk

Alexander’s has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, Regency Centers has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500.

Valuation & Earnings

This table compares Alexander’s and Regency Centers’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alexander’s $230.57 million 8.08 $80.50 million N/A N/A
Regency Centers $984.33 million 11.41 $176.07 million $3.69 17.96

Regency Centers has higher revenue and earnings than Alexander’s.

Summary

Alexander’s beats Regency Centers on 9 of the 16 factors compared between the two stocks.

Alexander’s Company Profile

Alexander's, Inc. (NYSE: ALX) is a real estate investment trust (“REIT”), incorporated in Delaware, engaged in leasing, managing, developing and redeveloping its properties. We are managed by, and our properties are leased and developed by, Vornado Realty Trust (“Vornado”) (NYSE: VNO). We have seven properties in the greater New York City metropolitan area.

Regency Centers Company Profile

Regency Centers is the preeminent national owner, operator, and developer of shopping centers located in affluent and densely populated trade areas. Our portfolio includes thriving properties merchandised with highly productive grocers, restaurants, service providers, and best-in-class retailers that connect to their neighborhoods, communities, and customers. Operating as a fully integrated real estate company, Regency Centers is a qualified real estate investment trust (REIT) that is self-administered, self-managed, and an S&P 500 Index member.

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