Critical Review: Summit Industrial Income REIT (OTCMKTS:SMMCF) vs. Federal Realty Investment Trust (NYSE:FRT)

Federal Realty Investment Trust (NYSE:FRT) and Summit Industrial Income REIT (OTCMKTS:SMMCF) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.

Earnings and Valuation

This table compares Federal Realty Investment Trust and Summit Industrial Income REIT”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Federal Realty Investment Trust	$1.20 billion	6.59	$295.21 million	$3.43	26.94
Summit Industrial Income REIT	N/A	N/A	N/A	$0.59	29.50

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

Profitability

This table compares Federal Realty Investment Trust and Summit Industrial Income REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Federal Realty Investment Trust	24.38%	9.89%	3.48%
Summit Industrial Income REIT	N/A	N/A	N/A

Insider and Institutional Ownership

93.9% of Federal Realty Investment Trust shares are held by institutional investors. Comparatively, 0.1% of Summit Industrial Income REIT shares are held by institutional investors. 1.0% of Federal Realty Investment Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Federal Realty Investment Trust and Summit Industrial Income REIT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Federal Realty Investment Trust	0	4	7	0	2.64
Summit Industrial Income REIT	0	0	0	0	0.00

Federal Realty Investment Trust currently has a consensus price target of $116.55, indicating a potential upside of 26.12%. Given Federal Realty Investment Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Federal Realty Investment Trust is more favorable than Summit Industrial Income REIT.

Dividends

Federal Realty Investment Trust pays an annual dividend of $4.40 per share and has a dividend yield of 4.8%. Summit Industrial Income REIT pays an annual dividend of $0.21 per share and has a dividend yield of 1.2%. Federal Realty Investment Trust pays out 128.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Summit Industrial Income REIT pays out 35.9% of its earnings in the form of a dividend. Federal Realty Investment Trust has raised its dividend for 58 consecutive years. Federal Realty Investment Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Federal Realty Investment Trust beats Summit Industrial Income REIT on 12 of the 14 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 Summit Industrial Income REIT

Summit Industrial Income REIT is an open-ended mutual fund trust, which engages in growing and managing a portfolio of light industrial properties. Its properties are located in Ontario, Quebec, Alberta, British Columbia, and New Brunswick. The company was founded on November 24, 1998 and is headquartered in Markham, Canada.