Comparing American Assets Trust (AAT) and Monmouth Real Estate Investment Corporation (NYSE:MNR)

Monmouth Real Estate Investment Corporation (NYSE: MNR) and American Assets Trust (NYSE:AAT) are both small-cap commercial reits – nec companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, dividends, institutional ownership, profitability and analyst recommendations.

Risk and Volatility

Monmouth Real Estate Investment Corporation has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500. Comparatively, American Assets Trust has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500.

Valuation & Earnings

This table compares Monmouth Real Estate Investment Corporation and American Assets Trust’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Monmouth Real Estate Investment Corporation $81.59 million 15.39 $32.49 million $0.30 57.70
American Assets Trust $295.09 million 6.31 $45.63 million $0.66 59.89

American Assets Trust has higher revenue and earnings than Monmouth Real Estate Investment Corporation. Monmouth Real Estate Investment Corporation is trading at a lower price-to-earnings ratio than American Assets Trust, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Monmouth Real Estate Investment Corporation and American Assets Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Monmouth Real Estate Investment Corporation 32.02% 7.91% 2.69%
American Assets Trust 10.90% 3.97% 1.58%

Dividends

Monmouth Real Estate Investment Corporation pays an annual dividend of $0.64 per share and has a dividend yield of 3.7%. American Assets Trust pays an annual dividend of $1.04 per share and has a dividend yield of 2.6%. Monmouth Real Estate Investment Corporation pays out 213.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Monmouth Real Estate Investment Corporation has increased its dividend for 2 consecutive years. Monmouth Real Estate Investment Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

62.2% of Monmouth Real Estate Investment Corporation shares are owned by institutional investors. Comparatively, 97.7% of American Assets Trust shares are owned by institutional investors. 5.3% of Monmouth Real Estate Investment Corporation shares are owned by company insiders. Comparatively, 34.2% of American Assets Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Monmouth Real Estate Investment Corporation and American Assets Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Monmouth Real Estate Investment Corporation 0 1 4 0 2.80
American Assets Trust 0 2 1 0 2.33

Monmouth Real Estate Investment Corporation currently has a consensus target price of $16.75, suggesting a potential downside of 3.24%. American Assets Trust has a consensus target price of $43.67, suggesting a potential upside of 10.46%. Given American Assets Trust’s higher probable upside, analysts clearly believe American Assets Trust is more favorable than Monmouth Real Estate Investment Corporation.

Summary

Monmouth Real Estate Investment Corporation beats American Assets Trust on 9 of the 17 factors compared between the two stocks.

Monmouth Real Estate Investment Corporation Company Profile

Monmouth Real Estate Investment Corporation is a real estate investment trust (REIT). The Company’s primary business is the ownership of real estate. Its investment focus is to own single tenant, industrial buildings and leased to investment-grade tenants or their subsidiaries on long-term net leases. In addition, the Company owns a portfolio of REIT investment securities. Its assets are situated near airports, transportation hubs and manufacturing plants. The Company’s featured properties include ULTA Cosmetics, Milwaukee Tool, Beam Suntory, FedEx Supply Chain Services, Coca-Cola, Best Buy, International Paper, Home Depot, FedEx Ground, Actavis, Anheuser-Busch, United Technologies, Kellogg’s, Siemens, National Oilwell and Cardinal Health. The Company’s property portfolio consists of approximately 107 properties located in over 30 states, containing a total of approximately 18.6 million rentable square feet.

American Assets Trust Company Profile

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.

Receive News & Ratings for Monmouth Real Estate Investment Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Monmouth Real Estate Investment Corporation and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply