Financial Comparison: Federal Realty Investment Trust (FRT) and Its Competitors

Federal Realty Investment Trust (NYSE:FRT) is one of 85 publicly-traded companies in the “Retail REITs” industry, but how does it weigh in compared to its competitors? We will compare Federal Realty Investment Trust to similar companies based on the strength of its profitability, analyst recommendations, risk, dividends, valuation, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Federal Realty Investment Trust and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Federal Realty Investment Trust	0	7	9	1	2.65
Federal Realty Investment Trust Competitors	958	3958	3432	134	2.32

Federal Realty Investment Trust presently has a consensus target price of $124.62, indicating a potential upside of 13.18%. As a group, “Retail REITs” companies have a potential upside of 12.51%. Given Federal Realty Investment Trust’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Federal Realty Investment Trust is more favorable than its competitors.

Insider & Institutional Ownership

93.9% of Federal Realty Investment Trust shares are held by institutional investors. Comparatively, 59.2% of shares of all “Retail REITs” companies are held by institutional investors. 1.1% of Federal Realty Investment Trust shares are held by insiders. Comparatively, 11.4% of shares of all “Retail REITs” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Federal Realty Investment Trust and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Federal Realty Investment Trust	$1.34 billion	$411.08 million	22.24
Federal Realty Investment Trust Competitors	$826.25 million	$253.68 million	27.63

Federal Realty Investment Trust has higher revenue and earnings than its competitors. Federal Realty Investment Trust is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

Federal Realty Investment Trust has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, Federal Realty Investment Trust’s competitors have a beta of 0.90, meaning that their average stock price is 10% less volatile than the S&P 500.

Dividends

Federal Realty Investment Trust pays an annual dividend of $4.64 per share and has a dividend yield of 4.2%. Federal Realty Investment Trust pays out 93.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Retail REITs” companies pay a dividend yield of 235.2% and pay out 78.0% of their earnings in the form of a dividend. Federal Realty Investment Trust has increased its dividend for 58 consecutive years. Federal Realty Investment Trust lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Federal Realty Investment Trust and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Federal Realty Investment Trust	32.67%	13.65%	4.83%
Federal Realty Investment Trust Competitors	30.07%	5.92%	3.19%

Summary

Federal Realty Investment Trust beats its competitors on 11 of the 15 factors compared.

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.