Critical Analysis: Ladder Capital (LADR) vs. Acadia Realty Trust (NYSE:AKR)
Ladder Capital (NYSE:LADR) and Acadia Realty Trust (NYSE:AKR) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.
This is a summary of recent recommendations and price targets for Ladder Capital and Acadia Realty Trust, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Acadia Realty Trust||0||2||2||0||2.50|
This table compares Ladder Capital and Acadia Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Acadia Realty Trust||19.11%||2.25%||1.23%|
Earnings and Valuation
This table compares Ladder Capital and Acadia Realty Trust’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ladder Capital||$450.14 million||4.12||$95.27 million||$1.36||12.26|
|Acadia Realty Trust||$250.26 million||8.68||$60.82 million||$1.51||17.66|
Ladder Capital has higher revenue and earnings than Acadia Realty Trust. Ladder Capital is trading at a lower price-to-earnings ratio than Acadia Realty Trust, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Ladder Capital has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Acadia Realty Trust has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500.
Ladder Capital pays an annual dividend of $1.30 per share and has a dividend yield of 7.8%. Acadia Realty Trust pays an annual dividend of $1.08 per share and has a dividend yield of 4.1%. Ladder Capital pays out 95.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Acadia Realty Trust pays out 71.5% of its earnings in the form of a dividend. Acadia Realty Trust has increased its dividend for 5 consecutive years.
Insider and Institutional Ownership
52.6% of Ladder Capital shares are owned by institutional investors. 12.8% of Ladder Capital shares are owned by company insiders. Comparatively, 2.2% of Acadia Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Ladder Capital beats Acadia Realty Trust on 12 of the 18 factors compared between the two stocks.
Ladder Capital Company Profile
Ladder Capital Corp operates as a real estate investment trust in the United States. The company operates through three segments: Loans, Securities, and Real Estate. The Loans segment originates conduit first mortgage loans that are secured by cash-flowing commercial real estate; and originates and invests in balance sheet first mortgage loans secured by commercial real estate properties that are undergoing transition, including lease-up, sell-out, and renovation or repositioning. It also invests in note purchase financings, subordinated debt, mezzanine debt, and other structured finance products related to commercial real estate. The Securities segment invests in commercial mortgage-backed securities and the U.S. Agency Securities. The Real Estate segment owns and invests in a portfolio of commercial and residential real estate properties, such as leased properties, office buildings, a warehouse, and condominium units. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Ladder Capital Corp was founded in 2008 and is headquartered in New York, New York.
Acadia Realty Trust Company Profile
Acadia Realty Trust is an equity real estate investment trust focused on delivering long-term, profitable growth via its dual – Core and Fund – operating platforms and its disciplined, location-driven investment strategy. Acadia Realty Trust is accomplishing this goal by building a best-in-class core real estate portfolio with meaningful concentrations of assets in the nation's most dynamic urban and street-retail corridors; making profitable opportunistic and value-add investments through its series of discretionary, institutional funds; and maintaining a strong balance sheet.
Receive News & Ratings for Ladder Capital Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ladder Capital and related companies with MarketBeat.com's FREE daily email newsletter.