Financial Analysis: Washington Real Estate Investment Trust (WRE) and Inland Real Estate (NYSE:IRC)

Washington Real Estate Investment Trust (NYSE: WRE) and Inland Real Estate (NYSE:IRC) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Valuation & Earnings

This table compares Washington Real Estate Investment Trust and Inland Real Estate’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Washington Real Estate Investment Trust $313.26 million 8.25 $119.33 million $0.30 109.73
Inland Real Estate N/A N/A N/A $0.10 106.10

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

Profitability

This table compares Washington Real Estate Investment Trust and Inland Real Estate’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Washington Real Estate Investment Trust 7.10% 2.10% 0.98%
Inland Real Estate -0.49% -2.46% -0.06%

Dividends

Washington Real Estate Investment Trust pays an annual dividend of $1.20 per share and has a dividend yield of 3.6%. Inland Real Estate pays an annual dividend of $0.57 per share and has a dividend yield of 5.4%. Washington Real Estate Investment Trust pays out 400.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Inland Real Estate pays out 570.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of recent recommendations for Washington Real Estate Investment Trust and Inland Real Estate, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Washington Real Estate Investment Trust 0 3 3 0 2.50
Inland Real Estate 0 0 0 0 N/A

Washington Real Estate Investment Trust presently has a consensus target price of $33.92, suggesting a potential upside of 3.03%. Given Washington Real Estate Investment Trust’s higher possible upside, equities research analysts plainly believe Washington Real Estate Investment Trust is more favorable than Inland Real Estate.

Insider & Institutional Ownership

82.6% of Washington Real Estate Investment Trust shares are owned by institutional investors. 0.6% of Washington Real Estate Investment Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Washington Real Estate Investment Trust beats Inland Real Estate on 10 of the 11 factors compared between the two stocks.

Washington Real Estate Investment Trust Company Profile

Washington Real Estate Investment Trust is a self-administered equity real estate investment trust. The Company’s business consists of the ownership and operation of real property in the greater Washington metro region. The Company owns a diversified portfolio of office buildings, multifamily buildings and retail centers. The Company’s segments include office, multifamily and retail. The Company’s office properties provide office space for various types of businesses and professions. The Company’s multifamily properties provide rental housing for individuals and families throughout the Washington metro region. Its retail properties are typically grocery store anchored neighborhood centers that include other small shop tenants or regional power centers with various junior box tenants. As of April 4, 2017, it owned a diversified portfolio of 50 properties, totaling approximately 6.0 million square feet of commercial space and 4,480 residential units, and land held for development.

Inland Real Estate Company Profile

IRC Retail Centers, Inc., formerly Inland Real Estate Corporation, is a real estate investment trust (REIT). The Company owns, operates and develops open-air neighborhood, community and power shopping centers and single tenant retail properties located throughout the Central and Southeastern United States. Through its subsidiaries, Inland Commercial Property Management, Inc. (ICPM) and Inland TRS Property Management, Inc., the Company manages all properties it owns interests in and properties for certain third parties and related parties. The Company owns investment properties located in the States of Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Minnesota, Missouri, Nebraska, New York, North Carolina, Ohio, Oklahoma, South Carolina, Texas, Virginia and Wisconsin. The Company owns interests in approximately 130 investment properties, including those owned through its unconsolidated joint ventures.

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