Analyzing Stag Industrial (NYSE:STAG) & InvenTrust Properties (NYSE:IVT)

InvenTrust Properties (NYSE:IVT) and Stag Industrial (NYSE:STAG) are both mid-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.

Risk and Volatility

InvenTrust Properties has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Stag Industrial has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.

Dividends

InvenTrust Properties pays an annual dividend of $0.95 per share and has a dividend yield of 3.3%. Stag Industrial pays an annual dividend of $1.49 per share and has a dividend yield of 4.0%. InvenTrust Properties pays out 62.1% of its earnings in the form of a dividend. Stag Industrial pays out 114.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. InvenTrust Properties has increased its dividend for 4 consecutive years and Stag Industrial has increased its dividend for 7 consecutive years. Stag Industrial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for InvenTrust Properties and Stag Industrial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InvenTrust Properties	0	3	4	0	2.57
Stag Industrial	0	6	3	0	2.33

InvenTrust Properties presently has a consensus price target of $31.60, suggesting a potential upside of 9.65%. Stag Industrial has a consensus price target of $38.89, suggesting a potential upside of 3.66%. Given InvenTrust Properties’ stronger consensus rating and higher probable upside, analysts plainly believe InvenTrust Properties is more favorable than Stag Industrial.

Earnings and Valuation

This table compares InvenTrust Properties and Stag Industrial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InvenTrust Properties	$273.97 million	8.17	$13.66 million	$1.53	18.84
Stag Industrial	$823.61 million	8.51	$189.22 million	$1.30	28.86

Stag Industrial has higher revenue and earnings than InvenTrust Properties. InvenTrust Properties is trading at a lower price-to-earnings ratio than Stag Industrial, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares InvenTrust Properties and Stag Industrial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InvenTrust Properties	40.46%	6.65%	4.44%
Stag Industrial	29.24%	6.84%	3.52%

Insider & Institutional Ownership

61.7% of InvenTrust Properties shares are held by institutional investors. Comparatively, 88.7% of Stag Industrial shares are held by institutional investors. 0.4% of InvenTrust Properties shares are held by company insiders. Comparatively, 1.1% of Stag Industrial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Stag Industrial beats InvenTrust Properties on 10 of the 17 factors compared between the two stocks.

About InvenTrust Properties

InvenTrust Properties Corp. (the “Company,” “IVT,” or “InvenTrust”) is a premier Sun Belt, multi-tenant essential retail REIT that owns, leases, redevelops, acquires and manages grocery-anchored neighborhood and community centers as well as high-quality power centers that often have a grocery component. Management pursues the Company’s business strategy by acquiring retail properties in Sun Belt markets, opportunistically disposing of retail properties, maintaining a flexible capital structure, and enhancing environmental, social and governance (“ESG”) practices and standards. A trusted, local operator bringing real estate expertise to its tenant relationships, IVT has built a strong reputation with market participants across its portfolio. IVT is committed to leadership in ESG practices and has been a Global Real Estate Sustainability Benchmark (“GRESB”) member since 2013.

About Stag Industrial

STAG Industrial, Inc. is a real estate investment company, which engages in acquiring, owning, and managing single-tenant, industrial real estate assets. It offers industrial real estate operating platform to real estate ownership. The company was founded by Benjamin S. Butcher on July 21, 2010 and is headquartered in Boston, MA.