Macerich (NYSE:MAC – Get Free Report) and CTO Realty Growth (NYSE:CTO – Get Free Report) are both real estate companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.
Insider and Institutional Ownership
87.4% of Macerich shares are owned by institutional investors. Comparatively, 67.2% of CTO Realty Growth shares are owned by institutional investors. 0.2% of Macerich shares are owned by company insiders. Comparatively, 4.5% of CTO Realty Growth shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Dividends
Macerich pays an annual dividend of $0.68 per share and has a dividend yield of 2.9%. CTO Realty Growth pays an annual dividend of $1.52 per share and has a dividend yield of 7.1%. Macerich pays out -104.6% of its earnings in the form of a dividend. CTO Realty Growth pays out 111.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Risk and Volatility
Analyst Ratings
This is a breakdown of current ratings and target prices for Macerich and CTO Realty Growth, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Macerich | 1 | 5 | 9 | 1 | 2.62 |
| CTO Realty Growth | 0 | 1 | 5 | 1 | 3.00 |
Macerich currently has a consensus price target of $26.00, suggesting a potential upside of 10.99%. CTO Realty Growth has a consensus price target of $24.50, suggesting a potential upside of 14.21%. Given CTO Realty Growth’s stronger consensus rating and higher probable upside, analysts clearly believe CTO Realty Growth is more favorable than Macerich.
Profitability
This table compares Macerich and CTO Realty Growth’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Macerich | -16.85% | -6.26% | -1.97% |
| CTO Realty Growth | 32.63% | 8.90% | 4.05% |
Valuation & Earnings
This table compares Macerich and CTO Realty Growth”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Macerich | $1.01 billion | 6.55 | -$197.15 million | ($0.65) | -36.04 |
| CTO Realty Growth | $149.54 million | 5.38 | $10.09 million | $1.36 | 15.77 |
CTO Realty Growth has lower revenue, but higher earnings than Macerich. Macerich is trading at a lower price-to-earnings ratio than CTO Realty Growth, indicating that it is currently the more affordable of the two stocks.
Summary
CTO Realty Growth beats Macerich on 10 of the 16 factors compared between the two stocks.
About Macerich
Macerich is a fully integrated, self-managed and self-administered real estate investment trust (REIT). As a leading owner, operator and developer of high-quality retail real estate in densely populated and attractive U.S. markets, Macerich’s portfolio is concentrated in California, the Pacific Northwest, Phoenix/Scottsdale, and the Metro New York to Washington, D.C. corridor. Developing and managing properties that serve as community cornerstones, Macerich currently owns 47 million square feet of real estate consisting primarily of interests in 44 regional town centers. Macerich is firmly dedicated to advancing environmental goals, social good and sound corporate governance. A recognized leader in sustainability, Macerich has achieved a #1 Global Real Estate Sustainability Benchmark (GRESB) ranking for the North American retail sector for nine consecutive years (2015-2023).
About CTO Realty Growth
CTO Realty Growth, Inc. is a publicly traded real estate investment trust that owns and operates a portfolio of high-quality, retail-based properties located primarily in higher growth markets in the United States. CTO also externally manages and owns a meaningful interest in Alpine Income Property Trust, Inc. (NYSE: PINE), a publicly traded net lease REIT.
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