Kite Realty Group Trust (NYSE:KRG – Get Free Report) and Ventas (NYSE:VTR – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.
Risk and Volatility
Kite Realty Group Trust has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, Ventas has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500.
Dividends
Kite Realty Group Trust pays an annual dividend of $1.08 per share and has a dividend yield of 4.6%. Ventas pays an annual dividend of $1.80 per share and has a dividend yield of 3.1%. Kite Realty Group Trust pays out -2,700.0% of its earnings in the form of a dividend. Ventas pays out -1,058.8% 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. Kite Realty Group Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Kite Realty Group Trust | $823.00 million | 6.23 | $47.50 million | ($0.04) | -583.58 |
Ventas | $4.50 billion | 5.49 | -$40.97 million | ($0.17) | -346.15 |
Kite Realty Group Trust has higher earnings, but lower revenue than Ventas. Kite Realty Group Trust is trading at a lower price-to-earnings ratio than Ventas, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Kite Realty Group Trust and Ventas, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Kite Realty Group Trust | 0 | 4 | 3 | 1 | 2.63 |
Ventas | 0 | 1 | 7 | 2 | 3.10 |
Kite Realty Group Trust presently has a consensus price target of $29.13, indicating a potential upside of 24.77%. Ventas has a consensus price target of $67.13, indicating a potential upside of 14.06%. Given Kite Realty Group Trust’s higher possible upside, equities analysts plainly believe Kite Realty Group Trust is more favorable than Ventas.
Insider & Institutional Ownership
90.8% of Kite Realty Group Trust shares are owned by institutional investors. Comparatively, 94.2% of Ventas shares are owned by institutional investors. 2.0% of Kite Realty Group Trust shares are owned by company insiders. Comparatively, 1.0% of Ventas shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Kite Realty Group Trust and Ventas’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Kite Realty Group Trust | -1.18% | -0.28% | -0.14% |
Ventas | -1.38% | -0.69% | -0.27% |
Summary
Kite Realty Group Trust beats Ventas on 10 of the 17 factors compared between the two stocks.
About Kite Realty Group Trust
Kite Realty Group Trust (NYSE: KRG) is a real estate investment trust (REIT) headquartered in Indianapolis, IN that is one of the largest publicly traded owners and operators of open-air shopping centers and mixed-use assets. The Company’s primarily grocery-anchored portfolio is located in high-growth Sun Belt and select strategic gateway markets. The combination of necessity-based grocery-anchored neighborhood and community centers, along with vibrant mixed-use assets makes the KRG portfolio an ideal mix for both retailers and consumers. Publicly listed since 2004, KRG has nearly 60 years of experience in developing, constructing and operating real estate. Using operational, investment, development, and redevelopment expertise, KRG continuously optimizes its portfolio to maximize value and return to shareholders. As of December 31, 2023, the Company owned interests in 180 U.S. open-air shopping centers and mixed-use assets, comprising approximately 28.1 million square feet of gross leasable space.
About Ventas
Ventas Inc. (NYSE: VTR) is a leading S&P 500 real estate investment trust focused on delivering strong, sustainable shareholder returns by enabling exceptional environments that benefit a large and growing aging population. The Company's growth is fueled by its senior housing communities, which provide valuable services to residents and enable them to thrive in supported environments. Ventas leverages its unmatched operational expertise, data-driven insights from its Ventas Operational InsightsTM platform, extensive relationships and strong financial position to achieve its goal of delivering outsized performance across approximately 1,400 properties. The Ventas portfolio is composed of senior housing communities, outpatient medical buildings, research centers and healthcare facilities in North America and the United Kingdom. The Company benefits from a seasoned team of talented professionals who share a commitment to excellence, integrity and a common purpose of helping people live longer, healthier, happier lives.
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