Critical Analysis: Wheeler Real Estate Investment Trust (WHLR) versus The Competition

Wheeler Real Estate Investment Trust (NASDAQ: WHLR) is one of 34 publicly-traded companies in the “Retail REITs” industry, but how does it contrast to its rivals? We will compare Wheeler Real Estate Investment Trust to related businesses based on the strength of its risk, dividends, analyst recommendations, profitability, valuation, earnings and institutional ownership.

Dividends

Wheeler Real Estate Investment Trust pays an annual dividend of $1.36 per share and has a dividend yield of 11.4%. Wheeler Real Estate Investment Trust pays out -74.3% of its earnings in the form of a dividend. As a group, “Retail REITs” companies pay a dividend yield of 4.3% and pay out 143.3% of their earnings in the form of a dividend. Wheeler Real Estate Investment Trust is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Wheeler Real Estate Investment Trust and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Wheeler Real Estate Investment Trust $52.98 million $32.30 million -6.55
Wheeler Real Estate Investment Trust Competitors $727.99 million $483.06 million 28.83

Wheeler Real Estate Investment Trust’s rivals have higher revenue and earnings than Wheeler Real Estate Investment Trust. Wheeler Real Estate Investment Trust is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Wheeler Real Estate Investment Trust and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wheeler Real Estate Investment Trust 0 1 3 0 2.75
Wheeler Real Estate Investment Trust Competitors 128 980 1109 22 2.46

Wheeler Real Estate Investment Trust currently has a consensus target price of $16.00, suggesting a potential upside of 33.56%. As a group, “Retail REITs” companies have a potential upside of 13.97%. Given Wheeler Real Estate Investment Trust’s stronger consensus rating and higher possible upside, equities analysts plainly believe Wheeler Real Estate Investment Trust is more favorable than its rivals.

Profitability

This table compares Wheeler Real Estate Investment Trust and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wheeler Real Estate Investment Trust -13.41% -14.10% -1.88%
Wheeler Real Estate Investment Trust Competitors 21.35% 5.12% 2.89%

Volatility and Risk

Wheeler Real Estate Investment Trust has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, Wheeler Real Estate Investment Trust’s rivals have a beta of 0.67, indicating that their average stock price is 33% less volatile than the S&P 500.

Institutional and Insider Ownership

85.7% of shares of all “Retail REITs” companies are owned by institutional investors. 5.3% of Wheeler Real Estate Investment Trust shares are owned by insiders. Comparatively, 10.4% of shares of all “Retail REITs” companies are owned 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.

Summary

Wheeler Real Estate Investment Trust rivals beat Wheeler Real Estate Investment Trust on 8 of the 14 factors compared.

Wheeler Real Estate Investment Trust Company Profile

Wheeler Real Estate Investment Trust, Inc. is a self-managed commercial real estate investment company. The Company focuses on acquiring and managing retail properties with a primary focus on grocery-anchored centers. As of December 31, 2016, the Company owned a portfolio consisting of 74 properties, including 59 retail shopping centers and five freestanding retail properties totaling 4,906,511 gross leasable square feet of which approximately 94% were leased, one office property, eight undeveloped land parcels totaling approximately 70 acres and one redevelopment project. Its properties are located in Virginia, North Carolina, South Carolina, Florida, Georgia, Kentucky, Oklahoma, Tennessee, Alabama, New Jersey, Pennsylvania and West Virginia. Its properties include Alex City Marketplace, Berkley Shopping Center, Clover Plaza, Darien Shopping Center, Cypress Shopping Center, Harrodsburg Marketplace, LaGrange Marketplace, Riverbridge Shopping Center and Village of Martinsville.

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