Contrasting Kimco Realty (NYSE:KIM) and Phillips Edison & Company, Inc. (NASDAQ:PECO)

Kimco Realty (NYSE:KIM) and Phillips Edison & Company, Inc. (NASDAQ:PECO) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Dividends

Kimco Realty pays an annual dividend of $1.00 per share and has a dividend yield of 4.7%. Phillips Edison & Company, Inc. pays an annual dividend of $1.30 per share and has a dividend yield of 3.9%. Kimco Realty pays out 120.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Phillips Edison & Company, Inc. pays out 236.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kimco Realty has increased its dividend for 2 consecutive years and Phillips Edison & Company, Inc. has increased its dividend for 1 consecutive years. Kimco Realty is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Kimco Realty and Phillips Edison & Company, Inc.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kimco Realty	28.54%	5.58%	2.99%
Phillips Edison & Company, Inc.	9.91%	2.64%	1.35%

Valuation and Earnings

This table compares Kimco Realty and Phillips Edison & Company, Inc.”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kimco Realty	$2.04 billion	7.14	$410.79 million	$0.83	25.87
Phillips Edison & Company, Inc.	$661.39 million	6.41	$62.69 million	$0.55	61.36

Kimco Realty has higher revenue and earnings than Phillips Edison & Company, Inc.. Kimco Realty is trading at a lower price-to-earnings ratio than Phillips Edison & Company, Inc., indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Kimco Realty and Phillips Edison & Company, Inc., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kimco Realty	0	8	5	1	2.50
Phillips Edison & Company, Inc.	0	4	3	0	2.43

Kimco Realty presently has a consensus price target of $24.85, indicating a potential upside of 15.70%. Phillips Edison & Company, Inc. has a consensus price target of $38.83, indicating a potential upside of 15.06%. Given Kimco Realty’s stronger consensus rating and higher probable upside, equities analysts clearly believe Kimco Realty is more favorable than Phillips Edison & Company, Inc..

Risk and Volatility

Kimco Realty has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500. Comparatively, Phillips Edison & Company, Inc. has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.

Insider & Institutional Ownership

89.3% of Kimco Realty shares are owned by institutional investors. Comparatively, 80.7% of Phillips Edison & Company, Inc. shares are owned by institutional investors. 2.2% of Kimco Realty shares are owned by insiders. Comparatively, 8.0% of Phillips Edison & Company, Inc. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Kimco Realty beats Phillips Edison & Company, Inc. on 16 of the 18 factors compared between the two stocks.

About Kimco Realty

Kimco Realty Corp. is a real estate investment trust (REIT) headquartered in New Hyde Park, N.Y., that is one of North America’s largest publicly traded owners and operators of open-air shopping centers. As of December 31, 2018, the company owned interests in 437 U.S. shopping centers comprising 76 million square feet of leasable space primarily concentrated in the top major metropolitan markets.

About Phillips Edison & Company, Inc.

Phillips Edison & Co., Inc. is a real estate investment trust, which engages in the ownership and operation of shopping centers. It also offers an investment management business providing property management and advisory services. Its portfolio consists of well-occupied, grocery-anchored neighborhood and community shopping centers having a mix of national, regional, and local retailers offering necessity-based goods and services. The company was founded by Jeffrey S. Edison and Michael C. Phillips in 1991 and is headquartered in Cincinnati, OH.