Weingarten Realty Investors (NYSE:WRI) and Great Ajax (NYSE:AJX) Head-To-Head Analysis

Great Ajax (NYSE:AJX) and Weingarten Realty Investors (NYSE:WRI) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a summary of recent recommendations for Great Ajax and Weingarten Realty Investors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Great Ajax 0 1 3 0 2.75
Weingarten Realty Investors 0 4 3 0 2.43

Great Ajax presently has a consensus target price of $15.67, suggesting a potential upside of 22.11%. Weingarten Realty Investors has a consensus target price of $25.38, suggesting a potential downside of 24.61%. Given Great Ajax’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Great Ajax is more favorable than Weingarten Realty Investors.

Volatility and Risk

Great Ajax has a beta of 1.78, indicating that its stock price is 78% more volatile than the S&P 500. Comparatively, Weingarten Realty Investors has a beta of 1.57, indicating that its stock price is 57% more volatile than the S&P 500.

Dividends

Great Ajax pays an annual dividend of $0.76 per share and has a dividend yield of 5.9%. Weingarten Realty Investors pays an annual dividend of $1.20 per share and has a dividend yield of 3.6%. Great Ajax pays out 81.7% 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 72.7% of its earnings in the form of a dividend. Great Ajax has increased its dividend for 1 consecutive years. Great Ajax is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Great Ajax 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
Great Ajax $51.38 million 5.74 $28.50 million $0.93 13.80
Weingarten Realty Investors $433.92 million 9.90 $112.15 million $1.65 20.40

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

Institutional and Insider Ownership

72.5% of Great Ajax shares are held by institutional investors. Comparatively, 85.2% of Weingarten Realty Investors shares are held by institutional investors. 6.5% of Great Ajax shares are held by insiders. Comparatively, 6.6% of Weingarten Realty Investors shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Great Ajax and Weingarten Realty Investors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Great Ajax 60.35% 9.63% 2.27%
Weingarten Realty Investors 19.72% 4.80% 2.23%

Great Ajax Company Profile

Great Ajax Corp., real estate company, acquires, invests in, and manages a portfolio of residential mortgage and small balance commercial mortgage loans. The company also holds real estate owned properties acquired upon the foreclosure or other settlement of its non-performing loans, as well as through outright purchases. In addition, it acquires and originates small balance commercial loans (SBC) secured by multi-family residential and commercial mixed-use retail/residential properties; and invests in single-family and smaller commercial properties through a foreclosure event of a loan or a direct acquisition. The company elected to be taxed as a real estate investment trust for U.S. federal income tax purposes. It generally would not be subject to federal corporate income taxes, if it distributes at least 90% of its taxable income to its stockholders. Great Ajax Corp. was incorporated in 2014 and is based in Tigard, Oregon.

Weingarten Realty Investors Company Profile

Weingarten Realty Investors (NYSE: WRI) is a shopping center owner, manager and developer. At September 30, 2020, the Company owned or operated under long-term leases, either directly or through its interest in real estate joint ventures or partnerships, a total of 162 properties which are located in 15 states spanning the country from coast to coast. These properties represent approximately 31.0 million square feet of which our interests in these properties aggregated approximately 21.0 million square feet of leasable area.

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