Head to Head Comparison: Ramco-Gershenson Properties Trust (RPT) & National Retail Properties (NNN)

National Retail Properties (NYSE: NNN) and Ramco-Gershenson Properties Trust (NYSE:RPT) are both financials companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.

Dividends

National Retail Properties pays an annual dividend of $1.90 per share and has a dividend yield of 4.5%. Ramco-Gershenson Properties Trust pays an annual dividend of $0.88 per share and has a dividend yield of 6.1%. National Retail Properties pays out 155.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ramco-Gershenson Properties Trust pays out 154.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Retail Properties has raised its dividend for 4 consecutive years and Ramco-Gershenson Properties Trust has raised its dividend for 7 consecutive years. Ramco-Gershenson Properties Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares National Retail Properties and Ramco-Gershenson Properties Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Retail Properties 44.96% 8.47% 4.08%
Ramco-Gershenson Properties Trust 20.75% 6.96% 2.55%

Valuation & Earnings

This table compares National Retail Properties and Ramco-Gershenson Properties Trust’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
National Retail Properties $533.65 million 12.06 $239.50 million $1.22 34.70
Ramco-Gershenson Properties Trust $260.93 million 4.37 $59.66 million $0.57 25.18

National Retail Properties has higher revenue and earnings than Ramco-Gershenson Properties Trust. Ramco-Gershenson Properties Trust is trading at a lower price-to-earnings ratio than National Retail Properties, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

National Retail Properties has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500. Comparatively, Ramco-Gershenson Properties Trust has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for National Retail Properties and Ramco-Gershenson Properties Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Retail Properties 0 0 5 0 3.00
Ramco-Gershenson Properties Trust 1 6 4 0 2.27

National Retail Properties presently has a consensus target price of $49.00, indicating a potential upside of 15.73%. Ramco-Gershenson Properties Trust has a consensus target price of $15.13, indicating a potential upside of 5.40%. Given National Retail Properties’ stronger consensus rating and higher probable upside, analysts clearly believe National Retail Properties is more favorable than Ramco-Gershenson Properties Trust.

Institutional & Insider Ownership

90.5% of National Retail Properties shares are owned by institutional investors. Comparatively, 98.2% of Ramco-Gershenson Properties Trust shares are owned by institutional investors. 1.0% of National Retail Properties shares are owned by company insiders. Comparatively, 3.7% of Ramco-Gershenson Properties Trust shares are owned 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

National Retail Properties beats Ramco-Gershenson Properties Trust on 11 of the 17 factors compared between the two stocks.

National Retail Properties Company Profile

National Retail Properties, Inc. is a real estate investment trust (REIT). The Company acquires, owns, invests in and develops properties that are leased primarily to retail tenants under long-term net leases and are primarily held for investment. As of December 31, 2016, it owned 2,535 properties with an aggregate gross leasable area of approximately 27,204,000 square feet, located in 48 states. The Company focuses on investing in a range of property and tenant types; leases, mortgages and other types of real estate interests; loans secured by personal property; loans secured by partnership or membership interests in partnerships or limited liability companies, and securities of other REITs, or other issuers, including for the purpose of exercising control over such entities. The Company owns a portfolio of freestanding retail stores across the United States. It owns approximately 2,290 stores, which are leased to over 400 tenants in approximately 40 different retail categories.

Ramco-Gershenson Properties Trust Company Profile

Ramco-Gershenson Properties Trust is an equity real estate investment trust. The Company’s primary business is the ownership, management, redevelopment, development and operation of retail shopping centers. As of December 31, 2016, it owned and managed multi-anchored shopping centers in 12 metropolitan markets in the United States. It conducts its business through its operating partnership, Ramco-Gershenson Properties, L.P. It invests in large, multi-anchored shopping centers that include national chain store tenants and supermarket tenants. National chain anchor tenants in its centers include, among others, Bed Bath and Beyond, Dick’s Sporting Goods, and Home Depot. Supermarket anchor tenants in its centers include, among others, Publix Super Market, Whole Foods, Kroger and Sprouts. Its shopping centers are located in metropolitan markets, such as Metro Detroit, Southeast Florida, Greater Denver, Cincinnati, St. Louis, Jacksonville, Tampa/Lakeland, Milwaukee, Chicago and Atlanta.

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