NNN REIT (NYSE:NNN) and Regency Centers (NASDAQ:REGCP) Critical Analysis

NNN REIT (NYSE:NNN) and Regency Centers (NASDAQ:REGCP) are both real estate companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.

Institutional & Insider Ownership

90.0% of NNN REIT shares are owned by institutional investors. 0.9% of NNN REIT shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares NNN REIT and Regency Centers”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NNN REIT	$926.21 million	9.63	$389.78 million	$2.06	22.75
Regency Centers	$1.62 billion	N/A	N/A	N/A	N/A

NNN REIT has higher earnings, but lower revenue than Regency Centers.

Analyst Recommendations

This is a summary of current ratings for NNN REIT and Regency Centers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NNN REIT	2	9	3	0	2.07
Regency Centers	0	0	0	0	0.00

NNN REIT currently has a consensus target price of $47.30, suggesting a potential upside of 0.94%. Given NNN REIT’s stronger consensus rating and higher probable upside, research analysts clearly believe NNN REIT is more favorable than Regency Centers.

Dividends

NNN REIT pays an annual dividend of $2.48 per share and has a dividend yield of 5.3%. Regency Centers pays an annual dividend of $1.56 per share and has a dividend yield of 6.8%. NNN REIT pays out 120.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NNN REIT has increased its dividend for 35 consecutive years.

Profitability

This table compares NNN REIT and Regency Centers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NNN REIT	40.35%	8.70%	4.06%
Regency Centers	N/A	N/A	N/A

Summary

NNN REIT beats Regency Centers on 9 of the 12 factors compared between the two stocks.

About NNN REIT

NNN REIT invests primarily in high-quality retail properties subject generally to long-term, net leases. As of December 31, 2023, the company owned 3,532 properties in 49 states with a gross leasable area of approximately 36.0 million square feet and a weighted average remaining lease term of 10.1 years. NNN is one of only three publicly traded REITs to have increased annual dividends for 34 or more consecutive years.

About Regency Centers

Regency Centers is a preeminent national owner, operator, and developer of shopping centers located in suburban trade areas with compelling demographics. Our portfolio includes thriving properties merchandised with highly productive grocers, restaurants, service providers, and best-in-class retailers that connect to their neighborhoods, communities, and customers. Operating as a fully integrated real estate company, Regency Centers is a qualified real estate investment trust (REIT) that is self-administered, self-managed, and an S&P 500 Index member.