Lument Finance Trust (NYSE:LFT) and Kimco Realty (NYSE:KIM) Critical Review

Kimco Realty (NYSE:KIMGet Free Report) and Lument Finance Trust (NYSE:LFTGet Free Report) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Insider and Institutional Ownership

89.3% of Kimco Realty shares are owned by institutional investors. Comparatively, 19.5% of Lument Finance Trust shares are owned by institutional investors. 2.2% of Kimco Realty shares are owned by company insiders. Comparatively, 2.7% of Lument Finance Trust 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.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Kimco Realty and Lument Finance Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kimco Realty 0 6 5 0 2.45
Lument Finance Trust 0 0 3 0 3.00

Kimco Realty currently has a consensus price target of $21.65, suggesting a potential upside of 14.47%. Lument Finance Trust has a consensus price target of $2.58, suggesting a potential upside of 1.71%. Given Kimco Realty’s higher probable upside, analysts clearly believe Kimco Realty is more favorable than Lument Finance Trust.

Earnings & Valuation

This table compares Kimco Realty and Lument Finance Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kimco Realty $1.78 billion 7.15 $654.27 million $0.53 35.68
Lument Finance Trust $109.19 million 1.22 $19.72 million $0.32 7.94

Kimco Realty has higher revenue and earnings than Lument Finance Trust. Lument Finance Trust is trading at a lower price-to-earnings ratio than Kimco Realty, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Kimco Realty has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500. Comparatively, Lument Finance Trust has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.

Profitability

This table compares Kimco Realty and Lument Finance Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kimco Realty 19.17% 3.54% 1.92%
Lument Finance Trust 16.43% 12.59% 1.71%

Dividends

Kimco Realty pays an annual dividend of $0.96 per share and has a dividend yield of 5.1%. Lument Finance Trust pays an annual dividend of $0.28 per share and has a dividend yield of 11.0%. Kimco Realty pays out 181.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Lument Finance Trust pays out 87.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kimco Realty has increased its dividend for 1 consecutive years and Lument Finance Trust has increased its dividend for 1 consecutive years. Lument Finance Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Kimco Realty beats Lument Finance Trust on 11 of the 16 factors compared between the two stocks.

About Kimco Realty

(Get Free Report)

Kimco Realty Corp. is a real estate investment trust (REIT) headquartered in New Hyde Park, N.Y., that is one of North America’s largest publicly traded owners and operators of open-air shopping centers. As of December 31, 2018, the company owned interests in 437 U.S. shopping centers comprising 76 million square feet of leasable space primarily concentrated in the top major metropolitan markets.

About Lument Finance Trust

(Get Free Report)

Lument Finance Trust, Inc., a real estate investment trust, focuses on investing in, financing, and managing a portfolio of commercial real estate (CRE) debt investments in the United States. The company primarily invests in transitional floating rate CRE mortgage loans on middle market multi-family assets; and other CRE -related investments, including mezzanine loans, preferred equity, commercial mortgage-backed securities, fixed rate loans, construction loans, and other CRE debt instruments. Lument Finance Trust, Inc. is qualified as a real estate investment trust (REIT) under the Internal Revenue Code of 1986. As a REIT, it would not be subject to federal income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as Hunt Companies Finance Trust, Inc. and changed its name to Lument Finance Trust, Inc. in December 2020. Lument Finance Trust, Inc. was incorporated in 2012 and is headquartered in New York, New York.

Receive News & Ratings for Kimco Realty Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kimco Realty and related companies with MarketBeat.com's FREE daily email newsletter.