Analyzing Highwoods Properties (NYSE:HIW) & InvenTrust Properties (NYSE:IVT)

InvenTrust Properties (NYSE:IVT) and Highwoods Properties (NYSE:HIW) are both mid-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Earnings & Valuation

This table compares InvenTrust Properties and Highwoods Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InvenTrust Properties	$307.98 million	9.19	$111.42 million	$1.41	25.77
Highwoods Properties	$806.11 million	4.62	$159.61 million	$0.84	40.23

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

Profitability

This table compares InvenTrust Properties and Highwoods Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InvenTrust Properties	35.66%	6.10%	3.95%
Highwoods Properties	11.64%	3.97%	1.52%

Volatility & Risk

InvenTrust Properties has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, Highwoods Properties has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Insider & Institutional Ownership

61.7% of InvenTrust Properties shares are owned by institutional investors. Comparatively, 96.3% of Highwoods Properties shares are owned by institutional investors. 0.7% of InvenTrust Properties shares are owned by company insiders. Comparatively, 1.3% of Highwoods Properties shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

InvenTrust Properties pays an annual dividend of $1.00 per share and has a dividend yield of 2.8%. Highwoods Properties pays an annual dividend of $2.00 per share and has a dividend yield of 5.9%. InvenTrust Properties pays out 70.9% of its earnings in the form of a dividend. Highwoods Properties pays out 238.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. InvenTrust Properties has raised its dividend for 4 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and target prices for InvenTrust Properties and Highwoods Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InvenTrust Properties	0	1	5	1	3.00
Highwoods Properties	0	6	2	0	2.25

InvenTrust Properties currently has a consensus price target of $35.14, suggesting a potential downside of 3.28%. Highwoods Properties has a consensus price target of $30.00, suggesting a potential downside of 11.23%. Given InvenTrust Properties’ stronger consensus rating and higher possible upside, equities analysts plainly believe InvenTrust Properties is more favorable than Highwoods Properties.

Summary

InvenTrust Properties beats Highwoods Properties on 11 of the 18 factors compared between the two stocks.

About InvenTrust Properties

InvenTrust Properties Corp. (the “Company,” “IVT,” or “InvenTrust”) is a premier Sun Belt, multi-tenant essential retail REIT that owns, leases, redevelops, acquires and manages grocery-anchored neighborhood and community centers as well as high-quality power centers that often have a grocery component. Management pursues the Company’s business strategy by acquiring retail properties in Sun Belt markets, opportunistically disposing of retail properties, maintaining a flexible capital structure, and enhancing environmental, social and governance (“ESG”) practices and standards. A trusted, local operator bringing real estate expertise to its tenant relationships, IVT has built a strong reputation with market participants across its portfolio. IVT is committed to leadership in ESG practices and has been a Global Real Estate Sustainability Benchmark (“GRESB”) member since 2013.

About Highwoods Properties

Highwoods Properties, Inc., headquartered in Raleigh, is a publicly-traded (NYSE:HIW), fully-integrated office real estate investment trust (REIT) that owns, develops, acquires, leases and manages properties primarily in the best business districts (BBDs) of Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond and Tampa. Highwoods is in the work-placemaking business. We believe that by creating environments and experiences where the best and brightest can achieve together what they cannot apart, we can deliver greater value to our customers, their teammates and, in turn, our stakeholders.