Alexandria Real Estate Equities (NYSE: ARE) and Equity One (NYSE:EQY) are both financials companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.
Institutional & Insider Ownership
98.5% of Alexandria Real Estate Equities shares are held by institutional investors. Comparatively, 64.0% of Equity One shares are held by institutional investors. 1.5% of Alexandria Real Estate Equities shares are held by insiders. Comparatively, 35.9% of Equity One shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Alexandria Real Estate Equities pays an annual dividend of $3.60 per share and has a dividend yield of 2.9%. Equity One pays an annual dividend of $0.72 per share and has a dividend yield of 2.3%. Alexandria Real Estate Equities pays out 229.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equity One pays out 146.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alexandria Real Estate Equities has raised its dividend for 7 consecutive years. Alexandria Real Estate Equities is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation & Earnings
This table compares Alexandria Real Estate Equities and Equity One’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alexandria Real Estate Equities||$1.13 billion||11.01||$169.09 million||$1.57||78.13|
Alexandria Real Estate Equities has higher revenue and earnings than Equity One. Equity One is trading at a lower price-to-earnings ratio than Alexandria Real Estate Equities, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and target prices for Alexandria Real Estate Equities and Equity One, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alexandria Real Estate Equities||0||1||6||0||2.86|
Alexandria Real Estate Equities currently has a consensus price target of $100.34, suggesting a potential downside of 18.20%. Given Alexandria Real Estate Equities’ higher possible upside, equities analysts plainly believe Alexandria Real Estate Equities is more favorable than Equity One.
This table compares Alexandria Real Estate Equities and Equity One’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alexandria Real Estate Equities||14.77%||3.08%||1.56%|
Volatility & Risk
Alexandria Real Estate Equities has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Equity One has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.
Alexandria Real Estate Equities beats Equity One on 9 of the 14 factors compared between the two stocks.
About Alexandria Real Estate Equities
Alexandria Real Estate Equities, Inc. is a real estate investment (REIT). The Company is engaged in the business of providing space for lease to the life science and technology industries. It focuses on collaborative life science and technology campuses. It develops urban cluster campuses and ecosystems. As of December 31, 2016, the Company had 199 properties in North America. As of December 31, 2016, its asset base in North America consisted of 25.2 million square feet, including 19.9 million rentable square feet/foot (RSF) of operating properties, and development and redevelopment of under construction or pre-construction, as well as 5.3 million square feet of future ground-up development projects. Its properties are located in various areas, including Greater Boston, San Francisco, New York City, San Diego, Seattle, Maryland and Research Triangle Park. Its properties include Alexandria Technology Square, Alexandria Park at 128 and Alexandria Technology Center-Gateway.
About Equity One
Equity One, Inc. is a real estate investment trust (REIT). The Company owns, manages, acquires, develops and redevelops shopping centers and retail properties located in supply constrained suburban and urban communities. As of December 31, 2016, the Company’s portfolio consisted of 122 properties, including 101 retail properties and five non-retail properties totaling approximately 12.8 million square feet of gross leasable area (GLA), 10 development or redevelopment properties with approximately 2.3 million square feet of GLA, and six land parcels. Its retail occupancy excluding developments and redevelopments was 95.8% and included national, regional and local tenants as of December 31, 2016. In addition, the Company had joint venture interests in six retail properties and two office buildings totaling approximately 1.4 million square feet of GLA as of December 31, 2016.
Receive News & Ratings for Alexandria Real Estate Equities Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Alexandria Real Estate Equities and related companies with MarketBeat.com's FREE daily email newsletter.