Financial Review: Macerich (MAC) & Its Rivals

Macerich (NYSE:MAC) is one of 24 publicly-traded companies in the “REIT – EQTY TRUST – RETAIL” industry, but how does it contrast to its peers? We will compare Macerich to related businesses based on the strength of its risk, analyst recommendations, dividends, earnings, valuation, profitability and institutional ownership.

Insider & Institutional Ownership

87.4% of Macerich shares are owned by institutional investors. Comparatively, 85.3% of shares of all “REIT – EQTY TRUST – RETAIL” companies are owned by institutional investors. 0.2% of Macerich shares are owned by insiders. Comparatively, 9.3% of shares of all “REIT – EQTY TRUST – RETAIL” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Macerich has a beta of 2.2, suggesting that its share price is 120% more volatile than the S&P 500. Comparatively, Macerich’s peers have a beta of 0.96, suggesting that their average share price is 4% less volatile than the S&P 500.

Dividends

Macerich pays an annual dividend of $0.68 per share and has a dividend yield of 3.3%. Macerich pays out -88.3% of its earnings in the form of a dividend. As a group, “REIT – EQTY TRUST – RETAIL” companies pay a dividend yield of 3.2% and pay out 120.0% of their earnings in the form of a dividend. Macerich is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Profitability

This table compares Macerich and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Macerich	-19.44%	-7.32%	-2.25%
Macerich Competitors	30.04%	11.28%	4.19%

Analyst Ratings

This is a breakdown of recent recommendations for Macerich and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Macerich	3	3	7	0	2.31
Macerich Competitors	377	2189	2326	86	2.43

Macerich presently has a consensus target price of $20.83, suggesting a potential upside of 0.80%. As a group, “REIT – EQTY TRUST – RETAIL” companies have a potential upside of 2.61%. Given Macerich’s peers stronger consensus rating and higher possible upside, analysts plainly believe Macerich has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares Macerich and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Macerich	$1.01 billion	-$197.15 million	-26.84
Macerich Competitors	$1.57 billion	$468.16 million	36.01

Macerich’s peers have higher revenue and earnings than Macerich. Macerich is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Macerich peers beat Macerich on 10 of the 15 factors compared.

About Macerich

Macerich is a fully integrated, self-managed and self-administered real estate investment trust (REIT). As a leading owner, operator and developer of high-quality retail real estate in densely populated and attractive U.S. markets, Macerich’s portfolio is concentrated in California, the Pacific Northwest, Phoenix/Scottsdale, and the Metro New York to Washington, D.C. corridor. Developing and managing properties that serve as community cornerstones, Macerich currently owns 47 million square feet of real estate consisting primarily of interests in 44 regional town centers. Macerich is firmly dedicated to advancing environmental goals, social good and sound corporate governance. A recognized leader in sustainability, Macerich has achieved a #1 Global Real Estate Sustainability Benchmark (GRESB) ranking for the North American retail sector for nine consecutive years (2015-2023).