Macerich Company (The) (MAC) & Urban Edge Properties (NYSE:UE) Head-To-Head Review

Macerich Company (The) (NYSE: MAC) and Urban Edge Properties (NYSE:UE) are both mid-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Insider and Institutional Ownership

97.0% of Macerich Company (The) shares are held by institutional investors. Comparatively, 87.2% of Urban Edge Properties shares are held by institutional investors. 3.8% of Macerich Company (The) shares are held by company insiders. Comparatively, 4.7% of Urban Edge Properties shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Macerich Company (The) and Urban Edge Properties, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Macerich Company (The) 1 8 4 0 2.23
Urban Edge Properties 1 0 0 0 1.00

Macerich Company (The) currently has a consensus price target of $66.75, indicating a potential upside of 19.99%. Urban Edge Properties has a consensus price target of $25.00, indicating a potential downside of 1.11%. Given Macerich Company (The)’s stronger consensus rating and higher possible upside, equities analysts clearly believe Macerich Company (The) is more favorable than Urban Edge Properties.

Valuation and Earnings

This table compares Macerich Company (The) and Urban Edge Properties’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Macerich Company (The) $1.07 billion 7.35 $635.66 million $1.02 54.54
Urban Edge Properties $379.02 million 7.17 $230.14 million $1.01 25.03

Macerich Company (The) has higher revenue and earnings than Urban Edge Properties. Urban Edge Properties is trading at a lower price-to-earnings ratio than Macerich Company (The), indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Macerich Company (The) and Urban Edge Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Macerich Company (The) 14.39% 3.38% 1.49%
Urban Edge Properties 27.04% 16.72% 4.87%

Volatility & Risk

Macerich Company (The) has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Urban Edge Properties has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.

Dividends

Macerich Company (The) pays an annual dividend of $2.84 per share and has a dividend yield of 5.1%. Urban Edge Properties pays an annual dividend of $0.88 per share and has a dividend yield of 3.5%. Macerich Company (The) pays out 278.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Urban Edge Properties pays out 87.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Urban Edge Properties has increased its dividend for 6 consecutive years.

Summary

Macerich Company (The) beats Urban Edge Properties on 11 of the 17 factors compared between the two stocks.

Macerich Company (The) Company Profile

The Macerich Company is a self-administered and self-managed real estate investment trust (REIT). The Company is involved in the acquisition, ownership, development, redevelopment, management and leasing of regional and community/power shopping centers located throughout the United States. The Company owns ownership interests in, The Macerich Partnership, L.P. (the Operating Partnership). As of December 31, 2016, the Company, through its operating partnership, had ownership interests in 50 regional shopping centers and seven community/power shopping centers. These 57 regional and community/power shopping centers consisted of approximately 56 million square feet of gross leasable area (GLA), as of December 31, 2016. The Company’s properties include Danbury Fair Mall, Desert Sky Mall, Fresno Fashion Fair, NorthPark Mall, Oaks, The, Towne Mall, Valley Mall, Arrowhead Towne Center, Deptford Mall and South Plains Mall.

Urban Edge Properties Company Profile

Urban Edge Properties is a real estate investment trust. The Company is focused on managing, developing, redeveloping and acquiring retail real estate in urban communities, in the New York metropolitan region. Urban Edge Properties LP (UELP or the Operating Partnership) serves as its partnership subsidiary and owns, through affiliates, all of its real estate properties and other assets. As of December 31, 2016, its portfolio consisted of 79 shopping centers, three malls and a warehouse park adjacent to one of its centers totaling 14.8 million square feet. As of December 31, 2016, it leased 19 properties under ground and/or building leases. As of December 31, 2016, it had approximately 1,200 leases. Its shopping centers and malls are located at California, Connecticut, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, South Carolina, Virginia and Puerto Rico. Its shopping centers and malls include Signal Hill, Vallejo, Walnut Creek, Newington and others.

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