Analyzing Ramco-Gershenson Properties Trust (RPT) & Kimco Realty Corporation (KIM)

Ramco-Gershenson Properties Trust (NYSE: RPT) and Kimco Realty Corporation (NYSE:KIM) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.

Analyst Ratings

This is a summary of recent recommendations and price targets for Ramco-Gershenson Properties Trust and Kimco Realty Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ramco-Gershenson Properties Trust 1 3 4 0 2.38
Kimco Realty Corporation 0 7 6 0 2.46

Ramco-Gershenson Properties Trust presently has a consensus target price of $15.57, suggesting a potential upside of 15.00%. Kimco Realty Corporation has a consensus target price of $25.80, suggesting a potential upside of 27.91%. Given Kimco Realty Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Kimco Realty Corporation is more favorable than Ramco-Gershenson Properties Trust.

Profitability

This table compares Ramco-Gershenson Properties Trust and Kimco Realty Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ramco-Gershenson Properties Trust 15.05% 4.99% 1.86%
Kimco Realty Corporation 21.77% 4.68% 2.23%

Valuation & Earnings

This table compares Ramco-Gershenson Properties Trust and Kimco Realty Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ramco-Gershenson Properties Trust $263.77 million 4.07 $165.05 million $0.41 33.03
Kimco Realty Corporation $1.17 billion 7.34 $764.78 million $0.49 41.16

Kimco Realty Corporation has higher revenue and earnings than Ramco-Gershenson Properties Trust. Ramco-Gershenson Properties Trust is trading at a lower price-to-earnings ratio than Kimco Realty Corporation, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Ramco-Gershenson Properties Trust has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, Kimco Realty Corporation has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.

Dividends

Ramco-Gershenson Properties Trust pays an annual dividend of $0.88 per share and has a dividend yield of 6.5%. Kimco Realty Corporation pays an annual dividend of $1.08 per share and has a dividend yield of 5.4%. Ramco-Gershenson Properties Trust pays out 214.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kimco Realty Corporation pays out 220.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ramco-Gershenson Properties Trust has increased its dividend for 7 consecutive years and Kimco Realty Corporation has increased its dividend for 4 consecutive years. Ramco-Gershenson Properties Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

98.7% of Ramco-Gershenson Properties Trust shares are owned by institutional investors. Comparatively, 89.0% of Kimco Realty Corporation shares are owned by institutional investors. 3.7% of Ramco-Gershenson Properties Trust shares are owned by company insiders. Comparatively, 2.9% of Kimco Realty Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Kimco Realty Corporation beats Ramco-Gershenson Properties Trust on 9 of the 17 factors compared between the two stocks.

Ramco-Gershenson Properties Trust Company Profile

Ramco-Gershenson Properties Trust is an equity real estate investment trust. The Company’s primary business is the ownership, management, redevelopment, development and operation of retail shopping centers. As of December 31, 2016, it owned and managed multi-anchored shopping centers in 12 metropolitan markets in the United States. It conducts its business through its operating partnership, Ramco-Gershenson Properties, L.P. It invests in large, multi-anchored shopping centers that include national chain store tenants and supermarket tenants. National chain anchor tenants in its centers include, among others, Bed Bath and Beyond, Dick’s Sporting Goods, and Home Depot. Supermarket anchor tenants in its centers include, among others, Publix Super Market, Whole Foods, Kroger and Sprouts. Its shopping centers are located in metropolitan markets, such as Metro Detroit, Southeast Florida, Greater Denver, Cincinnati, St. Louis, Jacksonville, Tampa/Lakeland, Milwaukee, Chicago and Atlanta.

Kimco Realty Corporation Company Profile

Kimco Realty Corporation is a self-administered real estate investment trust. The Company is engaged in the ownership, management, development and operation of open-air shopping centers, which are anchored generally by discount department stores, grocery stores or drugstores. As of June 30, 2017, the Company had interests in 510 shopping center properties, including 84 million square feet of gross leasable area (GLA), located in 32 states, Puerto Rico and Canada. As of March 31, 2017, the Company had 380 other property interests, primarily through the Company’s preferred equity investments and other real estate investments, totaling 5.8 million square feet of GLA.

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