Head-To-Head Contrast: Federal Realty Investment Trust (NYSE:FRT) vs. InvenTrust Properties (NYSE:IVT)

Federal Realty Investment Trust (NYSE:FRT) and InvenTrust Properties (NYSE:IVT) are both mid-cap real estate companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Dividends

Federal Realty Investment Trust pays an annual dividend of $4.52 per share and has a dividend yield of 3.9%. InvenTrust Properties pays an annual dividend of $1.00 per share and has a dividend yield of 3.1%. Federal Realty Investment Trust pays out 91.3% 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 pays out 500.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Federal Realty Investment Trust has increased its dividend for 58 consecutive years and InvenTrust Properties has increased its dividend for 4 consecutive years. Federal Realty Investment Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Federal Realty Investment Trust has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, InvenTrust Properties has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Federal Realty Investment Trust and InvenTrust Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Federal Realty Investment Trust	0	7	9	1	2.65
InvenTrust Properties	0	1	4	1	3.00

Federal Realty Investment Trust currently has a consensus target price of $128.75, suggesting a potential upside of 12.16%. InvenTrust Properties has a consensus target price of $35.67, suggesting a potential upside of 11.25%. Given Federal Realty Investment Trust’s higher probable upside, equities research analysts plainly believe Federal Realty Investment Trust is more favorable than InvenTrust Properties.

Profitability

This table compares Federal Realty Investment Trust and InvenTrust Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Federal Realty Investment Trust	32.67%	13.65%	4.83%
InvenTrust Properties	4.80%	0.85%	0.53%

Insider & Institutional Ownership

93.9% of Federal Realty Investment Trust shares are held by institutional investors. Comparatively, 61.7% of InvenTrust Properties shares are held by institutional investors. 1.1% of Federal Realty Investment Trust shares are held by insiders. Comparatively, 0.7% of InvenTrust Properties shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Federal Realty Investment Trust and InvenTrust Properties”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Federal Realty Investment Trust	$1.28 billion	7.75	$411.08 million	$4.95	23.19
InvenTrust Properties	$299.17 million	8.36	$111.42 million	$0.20	160.30

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

Summary

Federal Realty Investment Trust beats InvenTrust Properties on 14 of the 17 factors compared between the two stocks.

About Federal Realty Investment Trust

Federal Realty Investment Trust is an equity real estate investment trust, which engages in the provision of ownership, management, and redevelopment of retail and mixed-use properties located primarily in communities where demand exceeds supply in strategically selected metropolitan markets. The company was founded in 1962 and is headquartered in North Bethesda, MD.

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.