Contrasting PotlatchDeltic (NASDAQ:PCH) and SITE Centers (NYSE:SITC)

PotlatchDeltic (NASDAQ:PCH) and SITE Centers (NYSE:SITC) are both construction companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Insider & Institutional Ownership

86.1% of PotlatchDeltic shares are owned by institutional investors. Comparatively, 88.7% of SITE Centers shares are owned by institutional investors. 1.0% of PotlatchDeltic shares are owned by company insiders. Comparatively, 0.2% of SITE Centers shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

PotlatchDeltic has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, SITE Centers has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for PotlatchDeltic and SITE Centers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PotlatchDeltic	0	1	6	0	2.86
SITE Centers	0	7	2	0	2.22

PotlatchDeltic presently has a consensus price target of $48.43, indicating a potential upside of 23.57%. SITE Centers has a consensus price target of $35.25, indicating a potential upside of 195.72%. Given SITE Centers’ higher possible upside, analysts plainly believe SITE Centers is more favorable than PotlatchDeltic.

Profitability

This table compares PotlatchDeltic and SITE Centers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PotlatchDeltic	2.06%	1.05%	0.65%
SITE Centers	164.10%	34.20%	19.41%

Dividends

PotlatchDeltic pays an annual dividend of $1.80 per share and has a dividend yield of 4.6%. SITE Centers pays an annual dividend of $0.52 per share and has a dividend yield of 4.4%. PotlatchDeltic pays out 295.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SITE Centers pays out 5.0% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares PotlatchDeltic and SITE Centers”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PotlatchDeltic	$1.10 billion	2.79	$21.88 million	$0.61	64.25
SITE Centers	$226.04 million	2.77	$265.70 million	$10.32	1.16

SITE Centers has lower revenue, but higher earnings than PotlatchDeltic. SITE Centers is trading at a lower price-to-earnings ratio than PotlatchDeltic, indicating that it is currently the more affordable of the two stocks.

Summary

SITE Centers beats PotlatchDeltic on 9 of the 16 factors compared between the two stocks.

About PotlatchDeltic

PotlatchDeltic Corporation (Nasdaq: PCH) is a leading Real Estate Investment Trust (REIT) that owns nearly 2.2 million acres of timberlands in Alabama, Arkansas, Georgia, Idaho, Louisiana, Mississippi and South Carolina. Through its taxable REIT subsidiary, the company also operates six sawmills, an industrial-grade plywood mill, a residential and commercial real estate development business and a rural timberland sales program. PotlatchDeltic, a leader in sustainable forest management, is committed to environmental and social responsibility and to responsible governance.

About SITE Centers

SITE Centers is an owner and manager of open-air shopping centers located in suburban, high household income communities. The Company is a self-administered and self-managed REIT operating as a fully integrated real estate company, and is publicly traded on the New York Stock Exchange under the ticker symbol SITC.