American Assets Trust (NYSE: AAT) and Seritage Growth Properties (NYSE:SRG) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.
This table compares American Assets Trust and Seritage Growth Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|American Assets Trust||10.16%||3.76%||1.45%|
|Seritage Growth Properties||-30.60%||-5.50%||-2.69%|
Risk & Volatility
American Assets Trust has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500. Comparatively, Seritage Growth Properties has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.
Institutional & Insider Ownership
99.1% of American Assets Trust shares are owned by institutional investors. Comparatively, 85.8% of Seritage Growth Properties shares are owned by institutional investors. 34.2% of American Assets Trust shares are owned by insiders. Comparatively, 7.1% of Seritage Growth Properties shares 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.
American Assets Trust pays an annual dividend of $1.08 per share and has a dividend yield of 3.2%. Seritage Growth Properties pays an annual dividend of $1.00 per share and has a dividend yield of 2.9%. American Assets Trust pays out 56.3% of its earnings in the form of a dividend. Seritage Growth Properties pays out 68.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. American Assets Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a breakdown of recent ratings and recommmendations for American Assets Trust and Seritage Growth Properties, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American Assets Trust||1||0||3||0||2.50|
|Seritage Growth Properties||1||1||0||0||1.50|
American Assets Trust currently has a consensus price target of $42.00, suggesting a potential upside of 24.96%. Seritage Growth Properties has a consensus price target of $41.00, suggesting a potential upside of 18.84%. Given American Assets Trust’s stronger consensus rating and higher possible upside, analysts plainly believe American Assets Trust is more favorable than Seritage Growth Properties.
Earnings and Valuation
This table compares American Assets Trust and Seritage Growth Properties’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|American Assets Trust||$314.98 million||5.04||$40.13 million||$1.92||17.51|
|Seritage Growth Properties||$241.02 million||5.28||-$73.75 million||$1.47||23.47|
American Assets Trust has higher revenue and earnings than Seritage Growth Properties. American Assets Trust is trading at a lower price-to-earnings ratio than Seritage Growth Properties, indicating that it is currently the more affordable of the two stocks.
American Assets Trust beats Seritage Growth Properties on 13 of the 16 factors compared between the two stocks.
About American Assets Trust
American Assets Trust, Inc. (the ?company?) is a full service, vertically integrated and self-administered real estate investment trust, or REIT, headquartered in San Diego, California. The company has over 50 years of experience in acquiring, improving, developing and managing premier retail, office 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, Oregon, Washington, Texas and Hawaii. The company's retail portfolio comprises approximately 3.2 million rentable square feet, and its office portfolio comprises approximately 2.7 million square feet. In addition, the company owns one mixed-use property (including approximately 97,000 rentable square feet of retail space and a 369-room all-suite hotel) and 2,112 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. For additional information, please visit www.americanassetstrust.com.
About Seritage Growth Properties
Seritage Growth Properties (Seritage) is a self-administered and self-managed real estate investment trust. The Company is engaged in the acquisition, ownership, development, redevelopment, management and leasing of diversified retail real estate throughout the United States. Its assets are held by and its operations are primarily conducted through, directly or indirectly, Seritage Growth Properties, L.P. (Operating Partnership). As of December 31, 2016, the Company’s portfolio included approximately 42.2 million square feet of gross leasable area (GLA), consisting of 235 owned properties totaling over 36.8 million square feet of GLA across 49 states and Puerto Rico, and interests in 31 joint venture properties totaling over 5.4 million square feet of GLA across 17 states. As of December 31, 2016, it included over 3,000 acres of land or approximately 13 acres per site for its owned properties. Its properties are primarily located in areas, including in California, Florida and Texas.
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