Financial Review: Kimco Realty (KIM) vs. Saul Centers (BFS)

Kimco Realty (NYSE: KIM) and Saul Centers (NYSE:BFS) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.

Earnings & Valuation

This table compares Kimco Realty and Saul Centers’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kimco Realty $1.17 billion 6.69 $378.85 million $0.86 21.41
Saul Centers $217.07 million 6.30 $45.27 million $1.63 38.33

Kimco Realty has higher revenue and earnings than Saul Centers. Kimco Realty is trading at a lower price-to-earnings ratio than Saul Centers, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Kimco Realty has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, Saul Centers has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.

Dividends

Kimco Realty pays an annual dividend of $1.08 per share and has a dividend yield of 5.9%. Saul Centers pays an annual dividend of $2.04 per share and has a dividend yield of 3.3%. Kimco Realty pays out 125.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Saul Centers pays out 125.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kimco Realty has raised its dividend for 3 consecutive years and Saul Centers has raised its dividend for 7 consecutive years.

Profitability

This table compares Kimco Realty and Saul Centers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kimco Realty 35.51% 7.73% 3.65%
Saul Centers 21.42% 23.93% 3.44%

Insider & Institutional Ownership

92.2% of Kimco Realty shares are owned by institutional investors. Comparatively, 45.5% of Saul Centers shares are owned by institutional investors. 2.9% of Kimco Realty shares are owned by insiders. Comparatively, 48.8% of Saul Centers shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Kimco Realty and Saul Centers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kimco Realty 0 8 6 0 2.43
Saul Centers 0 1 1 0 2.50

Kimco Realty currently has a consensus price target of $23.02, indicating a potential upside of 25.03%. Given Kimco Realty’s higher possible upside, equities research analysts plainly believe Kimco Realty is more favorable than Saul Centers.

Summary

Kimco Realty beats Saul Centers on 9 of the 17 factors compared between the two stocks.

About Kimco Realty

Kimco Realty Corporation is a self-administered real estate investment trust. The Company is engaged in the ownership, management, development and operation of open-air shopping centers, which are anchored generally by discount department stores, grocery stores or drugstores. As of June 30, 2017, the Company had interests in 510 shopping center properties, including 84 million square feet of gross leasable area (GLA), located in 32 states, Puerto Rico and Canada. As of March 31, 2017, the Company had 380 other property interests, primarily through the Company’s preferred equity investments and other real estate investments, totaling 5.8 million square feet of GLA.

About Saul Centers

Saul Centers, Inc. operates as a real estate investment trust. The Company’s principal business activity is the ownership, management and development of income-producing properties. It operates through two segments: Shopping Centers and Mixed-Use Properties. The Company, which conducts all of its activities through its subsidiaries, the Saul Holdings Limited Partnership (Operating Partnership) and Subsidiary Partnerships, engages in the ownership, operation, management, leasing, acquisition, renovation, expansion, development and financing of community and neighborhood shopping centers and mixed-used properties in the Washington, District of Columbia/Baltimore metropolitan area. As of December 31, 2016, it properties (the Current Portfolio Properties) consisted of 49 shopping center properties (the Shopping Centers), six mixed-use properties, which consists of office, retail and multi-family residential uses (the Mixed-Use Properties) and three (non-operating) development properties.

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