Comparing Regency Centers (NASDAQ:REG) and InvenTrust Properties (NYSE:IVT)
by Tristan Rich · The Markets DailyInvenTrust Properties (NYSE:IVT – Get Free Report) and Regency Centers (NASDAQ:REG – Get Free Report) are both real estate companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, dividends, profitability, institutional ownership and valuation.
Risk & Volatility
InvenTrust Properties has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Regency Centers has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.
Earnings and Valuation
This table compares InvenTrust Properties and Regency Centers”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| InvenTrust Properties | $299.17 million | 7.75 | $111.42 million | $0.20 | 148.68 |
| Regency Centers | $1.55 billion | 8.44 | $527.46 million | $2.95 | 24.29 |
Regency Centers has higher revenue and earnings than InvenTrust Properties. Regency Centers is trading at a lower price-to-earnings ratio than InvenTrust Properties, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares InvenTrust Properties and Regency Centers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| InvenTrust Properties | 4.80% | 0.85% | 0.53% |
| Regency Centers | 34.38% | 8.04% | 4.26% |
Dividends
InvenTrust Properties pays an annual dividend of $1.00 per share and has a dividend yield of 3.4%. Regency Centers pays an annual dividend of $3.02 per share and has a dividend yield of 4.2%. InvenTrust Properties pays out 500.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Regency Centers pays out 102.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. InvenTrust Properties has raised its dividend for 4 consecutive years and Regency Centers has raised its dividend for 5 consecutive years. Regency Centers is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional and Insider Ownership
61.7% of InvenTrust Properties shares are held by institutional investors. Comparatively, 96.1% of Regency Centers shares are held by institutional investors. 0.7% of InvenTrust Properties shares are held by company insiders. Comparatively, 1.0% of Regency Centers shares are held 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.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for InvenTrust Properties and Regency Centers, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| InvenTrust Properties | 0 | 2 | 4 | 1 | 2.86 |
| Regency Centers | 0 | 8 | 8 | 2 | 2.67 |
InvenTrust Properties currently has a consensus target price of $35.14, indicating a potential upside of 18.18%. Regency Centers has a consensus target price of $83.21, indicating a potential upside of 16.13%. Given InvenTrust Properties’ stronger consensus rating and higher possible upside, equities analysts plainly believe InvenTrust Properties is more favorable than Regency Centers.
Summary
Regency Centers beats InvenTrust Properties on 16 of the 18 factors compared between the two stocks.
About InvenTrust Properties
InvenTrust Properties Corp. (the “Company,” “IVT,” or “InvenTrust”) is a premier Sun Belt, multi-tenant essential retail REIT that owns, leases, redevelops, acquires and manages grocery-anchored neighborhood and community centers as well as high-quality power centers that often have a grocery component. Management pursues the Company’s business strategy by acquiring retail properties in Sun Belt markets, opportunistically disposing of retail properties, maintaining a flexible capital structure, and enhancing environmental, social and governance (“ESG”) practices and standards. A trusted, local operator bringing real estate expertise to its tenant relationships, IVT has built a strong reputation with market participants across its portfolio. IVT is committed to leadership in ESG practices and has been a Global Real Estate Sustainability Benchmark (“GRESB”) member since 2013.
About Regency Centers
Regency Centers is a preeminent national owner, operator, and developer of shopping centers located in suburban trade areas with compelling demographics. Our portfolio includes thriving properties merchandised with highly productive grocers, restaurants, service providers, and best-in-class retailers that connect to their neighborhoods, communities, and customers. Operating as a fully integrated real estate company, Regency Centers is a qualified real estate investment trust (REIT) that is self-administered, self-managed, and an S&P 500 Index member.