American Assets Trust (AAT) & Its Rivals Critical Review

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

Profitability

This table compares American Assets Trust and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Assets Trust 10.93% 3.94% 1.61%
American Assets Trust Competitors 21.35% 5.12% 2.89%

Analyst Recommendations

This is a summary of recent recommendations and price targets for American Assets Trust and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Assets Trust 0 1 1 0 2.50
American Assets Trust Competitors 260 1210 1178 24 2.36

American Assets Trust currently has a consensus price target of $47.00, suggesting a potential upside of 15.82%. As a group, “Retail REITs” companies have a potential upside of 12.07%. Given American Assets Trust’s stronger consensus rating and higher possible upside, analysts plainly believe American Assets Trust is more favorable than its rivals.

Dividends

American Assets Trust pays an annual dividend of $1.04 per share and has a dividend yield of 2.6%. American Assets Trust pays out 157.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Retail REITs” companies pay a dividend yield of 4.3% and pay out 144.1% of their earnings in the form of a dividend. American Assets Trust lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Volatility and Risk

American Assets Trust has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, American Assets Trust’s rivals have a beta of 0.66, indicating that their average share price is 34% less volatile than the S&P 500.

Valuation & Earnings

This table compares American Assets Trust and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
American Assets Trust $298.95 million $168.82 million 61.49
American Assets Trust Competitors $711.68 million $472.02 million 29.56

American Assets Trust’s rivals have higher revenue and earnings than American Assets Trust. American Assets Trust is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

97.8% of American Assets Trust shares are owned by institutional investors. Comparatively, 86.3% of shares of all “Retail REITs” companies are owned by institutional investors. 34.2% of American Assets Trust shares are owned by insiders. Comparatively, 11.3% 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 company will outperform the market over the long term.

Summary

American Assets Trust rivals beat American Assets Trust on 10 of the 15 factors compared.

About American Assets Trust

American Assets Trust, Inc. is a full service, vertically integrated and self-administered real estate investment trust (REIT). The Company owns, operates, acquires and develops retail, office, multifamily and mixed-use properties in Southern California, Northern California, Oregon, Washington, Texas and Hawaii markets. The Company operates in four business segments: retail, office, multifamily and mixed-use. As of December 31, 2016, the Company’s portfolio consisted of 11 retail shopping centers; seven office properties; a mixed-use property consisting of a 369-room all-suite hotel and a retail shopping center, and five multifamily properties. Additionally, as of December 31, 2016, the Company owned land at four of its properties that it classified as held for development and construction in progress. The Company’s markets include San Diego, the San Francisco Bay Area, Portland, Oregon, Bellevue, Washington and Oahu, Hawaii.

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