Reviewing Acadia Realty Trust (AKR) & Macerich (MAC)

Macerich (NYSE: MAC) and Acadia Realty Trust (NYSE:AKR) are both mid-cap financials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, risk and dividends.

Dividends

Macerich pays an annual dividend of $2.96 per share and has a dividend yield of 4.5%. Acadia Realty Trust pays an annual dividend of $1.04 per share and has a dividend yield of 3.8%. Macerich pays out 281.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Acadia Realty Trust pays out 146.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Macerich has raised its dividend for 6 consecutive years and Acadia Realty Trust has raised its dividend for 4 consecutive years. Macerich is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Macerich and Acadia Realty Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Macerich 2 8 6 0 2.25
Acadia Realty Trust 0 2 2 0 2.50

Macerich currently has a consensus price target of $66.78, indicating a potential upside of 1.17%. Acadia Realty Trust has a consensus price target of $33.50, indicating a potential upside of 21.91%. Given Acadia Realty Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Acadia Realty Trust is more favorable than Macerich.

Volatility & Risk

Macerich has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, Acadia Realty Trust has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500.

Profitability

This table compares Macerich and Acadia Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Macerich 7.93% 1.83% 0.80%
Acadia Realty Trust 25.34% 2.77% 1.50%

Valuation and Earnings

This table compares Macerich and Acadia Realty Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Macerich $1.04 billion 8.92 $516.99 million $1.05 62.87
Acadia Realty Trust $189.94 million 12.11 $72.77 million $0.71 38.70

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

Insider & Institutional Ownership

97.6% of Macerich shares are owned by institutional investors. 3.8% of Macerich shares are owned by insiders. Comparatively, 1.7% of Acadia Realty Trust shares 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.

Summary

Macerich beats Acadia Realty Trust on 10 of the 17 factors compared between the two stocks.

Macerich Company Profile

The Macerich Company is a self-administered and self-managed real estate investment trust (REIT). The Company is involved in the acquisition, ownership, development, redevelopment, management and leasing of regional and community/power shopping centers located throughout the United States. The Company owns ownership interests in, The Macerich Partnership, L.P. (the Operating Partnership). As of December 31, 2016, the Company, through its operating partnership, had ownership interests in 50 regional shopping centers and seven community/power shopping centers. These 57 regional and community/power shopping centers consisted of approximately 56 million square feet of gross leasable area (GLA), as of December 31, 2016. The Company’s properties include Danbury Fair Mall, Desert Sky Mall, Fresno Fashion Fair, NorthPark Mall, Oaks, The, Towne Mall, Valley Mall, Arrowhead Towne Center, Deptford Mall and South Plains Mall.

Acadia Realty Trust Company Profile

Acadia Realty Trust is a real estate investment trust. The Company is focused on the ownership, acquisition, development and management of retail properties located in the United States. It operates through three segments: Core Portfolio, Funds and Structured Financing. Core Portfolio and Fund properties primarily consist of street and urban retail, and dense suburban shopping centers. Funds holds primarily retail real estate in which it co-invests with institutional investors. Structured Financing consists of earnings and expenses related to notes and mortgages receivable, which are held within the Core Portfolio or the Funds. As of December 31, 2016, it had ownership interests in 182 properties within its core portfolio. In the Core Portfolio segment, the Company owned an interest in a 311,000 square foot shopping center, a 28,000 square foot retail and an interest in an 87,000 square foot retail property, among others, as of December 31, 2016.

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