Federal Realty Investment Trust (NYSE:FRT – Get Free Report) and Macerich (NYSE:MAC – Get Free Report) are both mid-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.
Dividends
Federal Realty Investment Trust pays an annual dividend of $4.52 per share and has a dividend yield of 4.6%. Macerich pays an annual dividend of $0.68 per share and has a dividend yield of 3.9%. Federal Realty Investment Trust pays out 114.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Macerich pays out -42.8% of its earnings in the form of a dividend. Federal Realty Investment Trust has increased 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.
Profitability
This table compares Federal Realty Investment Trust and Macerich’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Federal Realty Investment Trust | 27.65% | 11.12% | 4.01% |
| Macerich | -37.97% | -14.21% | -4.47% |
Risk & Volatility
Insider and Institutional Ownership
93.9% of Federal Realty Investment Trust shares are owned by institutional investors. Comparatively, 87.4% of Macerich shares are owned by institutional investors. 1.0% of Federal Realty Investment Trust shares are owned by company insiders. Comparatively, 0.2% of Macerich shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Federal Realty Investment Trust and Macerich”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Federal Realty Investment Trust | $1.20 billion | 7.02 | $295.21 million | $3.94 | 24.84 |
| Macerich | $1.03 billion | 4.36 | -$194.12 million | ($1.59) | -10.98 |
Federal Realty Investment Trust has higher revenue and earnings than Macerich. Macerich is trading at a lower price-to-earnings ratio than Federal Realty Investment Trust, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Federal Realty Investment Trust and Macerich, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Federal Realty Investment Trust | 0 | 10 | 5 | 1 | 2.44 |
| Macerich | 3 | 5 | 5 | 0 | 2.15 |
Federal Realty Investment Trust currently has a consensus price target of $108.25, indicating a potential upside of 10.63%. Macerich has a consensus price target of $19.95, indicating a potential upside of 14.30%. Given Macerich’s higher probable upside, analysts clearly believe Macerich is more favorable than Federal Realty Investment Trust.
Summary
Federal Realty Investment Trust beats Macerich 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 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).
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