Head to Head Comparison: EPR Properties (NYSE:EPR) & Macerich (NYSE:MAC)

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

Earnings and Valuation

This table compares EPR Properties and Macerich”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EPR Properties	$698.07 million	5.92	$146.07 million	$2.03	26.76
Macerich	$918.20 million	5.07	-$194.12 million	($1.75)	-10.53

EPR Properties has higher earnings, but lower revenue than Macerich. Macerich is trading at a lower price-to-earnings ratio than EPR Properties, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

74.7% of EPR Properties shares are owned by institutional investors. Comparatively, 87.4% of Macerich shares are owned by institutional investors. 2.3% of EPR Properties shares are owned by company insiders. Comparatively, 0.5% of Macerich shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares EPR Properties and Macerich’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EPR Properties	25.28%	7.66%	3.21%
Macerich	-41.33%	-15.15%	-4.89%

Volatility & Risk

EPR Properties has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, Macerich has a beta of 2.27, suggesting that its stock price is 127% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for EPR Properties and Macerich, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EPR Properties	1	5	2	1	2.33
Macerich	2	5	5	0	2.25

EPR Properties presently has a consensus price target of $57.07, suggesting a potential upside of 5.06%. Macerich has a consensus price target of $19.78, suggesting a potential upside of 7.37%. Given Macerich’s higher probable upside, analysts plainly believe Macerich is more favorable than EPR Properties.

Dividends

EPR Properties pays an annual dividend of $3.54 per share and has a dividend yield of 6.5%. Macerich pays an annual dividend of $0.68 per share and has a dividend yield of 3.7%. EPR Properties pays out 174.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Macerich pays out -38.9% of its earnings in the form of a dividend. EPR Properties has raised its dividend for 1 consecutive years. EPR Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

EPR Properties beats Macerich on 12 of the 18 factors compared between the two stocks.

About EPR Properties

EPR Properties (NYSE:EPR) is the leading diversified experiential net lease real estate investment trust (REIT), specializing in select enduring experiential properties in the real estate industry. We focus on real estate venues that create value by facilitating out of home leisure and recreation experiences where consumers choose to spend their discretionary time and money. We have total assets of approximately $5.7 billion (after accumulated depreciation of approximately $1.4 billion) across 44 states. We adhere to rigorous underwriting and investing criteria centered on key industry, property and tenant level cash flow standards. We believe our focused approach provides a competitive advantage and the potential for stable and attractive returns.

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).