Analyzing Macerich (MAC) and Its Rivals

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

Profitability

This table compares Macerich and its competitors’ 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%

Dividends

Macerich pays an annual dividend of $0.68 per share and has a dividend yield of 3.2%. 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 3.1% and pay out 120.0% of their earnings in the form of a dividend. Macerich is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Insider and 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. 0.5% of Macerich shares are owned by insiders. Comparatively, 8.9% of shares of all “REIT – EQTY TRUST – RETAIL” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

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

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Macerich	$1.01 billion	-$197.15 million	-27.83
Macerich Competitors	$1.57 billion	$468.16 million	36.91

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Macerich	3	3	7	0	2.31
Macerich Competitors	380	2193	2330	87	2.43

Macerich currently has a consensus target price of $20.77, indicating a potential downside of 3.08%. As a group, “REIT – EQTY TRUST – RETAIL” companies have a potential upside of 0.02%. Given Macerich’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Macerich has less favorable growth aspects than its competitors.

Summary

Macerich competitors 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).