Reviewing Macerich (MAC) and Its Peers

Macerich (NYSE:MAC) is one of 24 publicly-traded companies in the “REIT – EQTY TRUST – RETAIL” industry, but how does it compare to its peers? We will compare Macerich to related companies based on the strength of its risk, profitability, analyst recommendations, dividends, valuation, earnings and institutional ownership.

Insider and Institutional Ownership

87.4% of Macerich shares are owned by institutional investors. Comparatively, 85.3% of shares of all “REIT – EQTY TRUST – RETAIL” companies are owned by institutional investors. 0.5% of Macerich shares are owned by company insiders. Comparatively, 8.9% of shares of all “REIT – EQTY TRUST – RETAIL” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Macerich pays an annual dividend of $0.68 per share and has a dividend yield of 3.2%. Macerich pays out -88.3% of its earnings in the form of a dividend. As a group, “REIT – EQTY TRUST – RETAIL” companies pay a dividend yield of 3.2% and pay out 120.1% of their earnings in the form of a dividend.

Volatility & Risk

Macerich has a beta of 2.2, suggesting that its share price is 120% more volatile than the S&P 500. Comparatively, Macerich’s peers have a beta of 0.96, suggesting that their average share price is 4% less volatile than the S&P 500.

Profitability

This table compares Macerich and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Macerich	-19.44%	-7.32%	-2.25%
Macerich Competitors	30.04%	11.28%	4.19%

Valuation and Earnings

This table compares Macerich and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Macerich	$1.01 billion	-$197.15 million	-27.82
Macerich Competitors	$1.57 billion	$468.16 million	36.56

Macerich’s peers have higher revenue and earnings than Macerich. Macerich is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of current ratings and target prices for Macerich and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Macerich	3	3	7	0	2.31
Macerich Competitors	380	2189	2328	87	2.43

Macerich currently has a consensus price target of $20.83, suggesting a potential downside of 2.76%. As a group, “REIT – EQTY TRUST – RETAIL” companies have a potential upside of 1.48%. Given Macerich’s peers stronger consensus rating and higher possible upside, analysts plainly believe Macerich has less favorable growth aspects than its peers.

Summary

Macerich peers beat Macerich on 11 of the 15 factors compared.

Macerich Company Profile

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).