Comparing Urban Edge Properties (NYSE:UE) and American Assets Trust (NYSE:AAT)

American Assets Trust (NYSE:AAT) and Urban Edge Properties (NYSE:UE) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Dividends

American Assets Trust pays an annual dividend of $1.36 per share and has a dividend yield of 7.2%. Urban Edge Properties pays an annual dividend of $0.76 per share and has a dividend yield of 4.0%. American Assets Trust pays out 134.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Urban Edge Properties pays out 85.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Assets Trust has raised its dividend for 4 consecutive years and Urban Edge Properties has raised its dividend for 2 consecutive years. American Assets Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares American Assets Trust and Urban Edge Properties”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Assets Trust	$439.58 million	2.61	$72.82 million	$1.01	18.59
Urban Edge Properties	$444.97 million	5.40	$72.56 million	$0.89	21.47

American Assets Trust has higher earnings, but lower revenue than Urban Edge Properties. American Assets Trust is trading at a lower price-to-earnings ratio than Urban Edge Properties, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

American Assets Trust has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, Urban Edge Properties has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for American Assets Trust and Urban Edge Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Assets Trust	0	3	0	0	2.00
Urban Edge Properties	0	4	2	0	2.33

American Assets Trust currently has a consensus target price of $20.50, suggesting a potential upside of 9.19%. Urban Edge Properties has a consensus target price of $22.00, suggesting a potential upside of 15.14%. Given Urban Edge Properties’ stronger consensus rating and higher possible upside, analysts plainly believe Urban Edge Properties is more favorable than American Assets Trust.

Profitability

This table compares American Assets Trust and Urban Edge Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Assets Trust	13.98%	5.43%	2.03%
Urban Edge Properties	23.73%	8.10%	3.35%

Institutional & Insider Ownership

90.4% of American Assets Trust shares are owned by institutional investors. Comparatively, 94.9% of Urban Edge Properties shares are owned by institutional investors. 36.8% of American Assets Trust shares are owned by company insiders. Comparatively, 2.4% of Urban Edge Properties shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Urban Edge Properties beats American Assets Trust on 12 of the 17 factors compared between the two stocks.

About American Assets Trust

American Assets Trust, Inc. is a full service, vertically integrated and self-administered real estate investment trust ("REIT"), headquartered in San Diego, California. The company has over 55 years of experience in acquiring, improving, developing and managing premier office, retail, and residential properties throughout the United States in some of the nation's most dynamic, high-barrier-to-entry markets primarily in Southern California, Northern California, Washington, Oregon, Texas and Hawaii. The company's office portfolio comprises approximately 4.1 million rentable square feet, and its retail portfolio comprises approximately 3.1 million rentable square feet. In addition, the company owns one mixed-use property (including approximately 94,000 rentable square feet of retail space and a 369-room all-suite hotel) and 2,110 multifamily units. In 2011, the company was formed to succeed to the real estate business of American Assets, Inc., a privately held corporation founded in 1967 and, as such, has significant experience, long-standing relationships and extensive knowledge of its core markets, submarkets and asset classes.

About Urban Edge Properties

Urban Edge Properties is a NYSE listed real estate investment trust focused on owning, managing, acquiring, developing, and redeveloping retail real estate in urban communities, primarily in the Washington, D.C. to Boston corridor. Urban Edge owns 76 properties totaling 17.1 million square feet of gross leasable area.