Comparing Macerich (MAC) and The Competition

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

Insider and Institutional Ownership

87.4% of Macerich shares are held by institutional investors. Comparatively, 85.3% of shares of all “REIT – EQTY TRUST – RETAIL” companies are held by institutional investors. 0.2% of Macerich shares are held by insiders. Comparatively, 8.8% of shares of all “REIT – EQTY TRUST – RETAIL” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

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

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Macerich	$1.01 billion	-$197.15 million	-28.47
Macerich Competitors	$1.57 billion	$468.16 million	37.27

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.

Dividends

Macerich pays an annual dividend of $0.68 per share and has a dividend yield of 3.1%. 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 -1.3% of their earnings in the form of a dividend.

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%

Analyst Recommendations

This is a summary of current ratings and price targets for Macerich and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Macerich	3	3	7	0	2.31
Macerich Competitors	380	2196	2331	87	2.43

Macerich presently has a consensus price target of $20.77, indicating a potential downside of 5.27%. As a group, “REIT – EQTY TRUST – RETAIL” companies have a potential downside of 0.14%. Given Macerich’s peers stronger consensus rating and higher probable 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).