Comparing Acadia Realty Trust (NYSE:AKR) & Saul Centers (NYSE:BFS)

Acadia Realty Trust (NYSE:AKR) and Saul Centers (NYSE:BFS) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitability.

Insider and Institutional Ownership

99.9% of Acadia Realty Trust shares are owned by institutional investors. Comparatively, 45.6% of Saul Centers shares are owned by institutional investors. 2.7% of Acadia Realty Trust shares are owned by insiders. Comparatively, 51.5% of Saul Centers shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Acadia Realty Trust and Saul Centers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Acadia Realty Trust 0 1 4 0 2.80
Saul Centers 0 0 2 0 3.00

Acadia Realty Trust currently has a consensus price target of $20.33, suggesting a potential downside of 1.34%. Saul Centers has a consensus price target of $50.50, suggesting a potential upside of 13.33%. Given Saul Centers’ stronger consensus rating and higher probable upside, analysts clearly believe Saul Centers is more favorable than Acadia Realty Trust.

Profitability

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

Net Margins Return on Equity Return on Assets
Acadia Realty Trust -4.10% -0.52% -0.26%
Saul Centers 17.88% 14.51% 2.46%

Earnings and Valuation

This table compares Acadia Realty Trust and Saul Centers’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Acadia Realty Trust $255.48 million 7.13 -$8.76 million $1.02 20.21
Saul Centers $225.21 million 4.67 $40.38 million $2.88 15.47

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

Dividends

Acadia Realty Trust pays an annual dividend of $0.60 per share and has a dividend yield of 2.9%. Saul Centers pays an annual dividend of $2.20 per share and has a dividend yield of 4.9%. Acadia Realty Trust pays out 58.8% of its earnings in the form of a dividend. Saul Centers pays out 76.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Acadia Realty Trust has increased its dividend for 1 consecutive years and Saul Centers has increased its dividend for 1 consecutive years.

Risk and Volatility

Acadia Realty Trust has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500. Comparatively, Saul Centers has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Summary

Saul Centers beats Acadia Realty Trust on 10 of the 16 factors compared between the two stocks.

About Acadia Realty Trust

Acadia Realty Trust is a real estate investment trust, which engages in delivering operating platforms and investment strategy. It operates through the following business segments: Core Portfolio, Funds, and Structured Financing. The Core Portfolio segment consists of retail properties. The Funds segment handles retail real estate. The Structured Financing segment involves earnings and expenses related to notes and mortgages receivable which are held within the Core Portfolio or the Funds. The company was founded by Kenneth F. Bernstein in 1964 and is headquartered in Rye, NY.

About Saul Centers

Saul Centers, Inc. is a real estate investment trust, which engages inthe ownership, management, and development of income producing properties. It operates through the Shopping Centers and Mixed-Use Properties business segments. The Shopping Centers segment consists community and neighborhood shopping centers which are anchored by supermarkets, discount department stores, and drug stores. The Mixed-Use Properties segment comprises of facilities which are located in differing commercial environments with distinctive demographic characteristics, and are geographically removed from one another. The company was founded on June 10, 1993 and is headquartered in Bethesda, MD.

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