Weingarten Realty Investors (WRI) vs. Macerich Company (The) (MAC) Head to Head Analysis

Macerich Company (The) (NYSE: MAC) and Weingarten Realty Investors (NYSE:WRI) are both mid-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitabiliy, analyst recommendations, earnings and valuation.

Profitability

This table compares Macerich Company (The) and Weingarten Realty Investors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Macerich Company (The) 16.01% 3.72% 1.67%
Weingarten Realty Investors 29.16% 9.53% 3.78%

Risk and Volatility

Macerich Company (The) has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Weingarten Realty Investors has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Macerich Company (The) and Weingarten Realty Investors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Macerich Company (The) 2 9 3 0 2.07
Weingarten Realty Investors 1 2 1 0 2.00

Macerich Company (The) presently has a consensus target price of $72.62, indicating a potential upside of 25.70%. Weingarten Realty Investors has a consensus target price of $38.88, indicating a potential upside of 26.42%. Given Weingarten Realty Investors’ higher probable upside, analysts clearly believe Weingarten Realty Investors is more favorable than Macerich Company (The).

Institutional & Insider Ownership

98.8% of Macerich Company (The) shares are held by institutional investors. Comparatively, 80.3% of Weingarten Realty Investors shares are held by institutional investors. 3.8% of Macerich Company (The) shares are held by company insiders. Comparatively, 7.3% of Weingarten Realty Investors shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Macerich Company (The) pays an annual dividend of $2.84 per share and has a dividend yield of 4.9%. Weingarten Realty Investors pays an annual dividend of $1.54 per share and has a dividend yield of 5.0%. Macerich Company (The) pays out 249.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Weingarten Realty Investors pays out 122.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Macerich Company (The) has increased its dividend for 6 consecutive years and Weingarten Realty Investors has increased its dividend for 7 consecutive years. Weingarten Realty Investors is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Macerich Company (The) and Weingarten Realty Investors’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Macerich Company (The) $1.08 billion 7.58 $644.59 million $1.14 50.68
Weingarten Realty Investors $560.80 million 7.04 $363.31 million $1.26 24.40

Macerich Company (The) has higher revenue and earnings than Weingarten Realty Investors. Weingarten Realty Investors is trading at a lower price-to-earnings ratio than Macerich Company (The), indicating that it is currently the more affordable of the two stocks.

Summary

Weingarten Realty Investors beats Macerich Company (The) on 9 of the 17 factors compared between the two stocks.

About Macerich Company (The)

The Macerich Company is a self-administered and self-managed real estate investment trust (REIT). The Company is involved in the acquisition, ownership, development, redevelopment, management and leasing of regional and community/power shopping centers located throughout the United States. The Company owns ownership interests in, The Macerich Partnership, L.P. (the Operating Partnership). As of December 31, 2016, the Company, through its operating partnership, had ownership interests in 50 regional shopping centers and seven community/power shopping centers. These 57 regional and community/power shopping centers consisted of approximately 56 million square feet of gross leasable area (GLA), as of December 31, 2016. The Company’s properties include Danbury Fair Mall, Desert Sky Mall, Fresno Fashion Fair, NorthPark Mall, Oaks, The, Towne Mall, Valley Mall, Arrowhead Towne Center, Deptford Mall and South Plains Mall.

About Weingarten Realty Investors

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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