Kite Realty Group Trust (NYSE:KRG) vs. Champion Real Estate Investment Trust (OTCMKTS:CMPNF) Financial Analysis

Champion Real Estate Investment Trust (OTCMKTS:CMPNF) and Kite Realty Group Trust (NYSE:KRG) are both real estate companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Dividends

Champion Real Estate Investment Trust pays an annual dividend of $0.11 per share and has a dividend yield of 56.0%. Kite Realty Group Trust pays an annual dividend of $1.04 per share and has a dividend yield of 4.0%. Champion Real Estate Investment Trust pays out -149.0% of its earnings in the form of a dividend. Kite Realty Group 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. Champion Real Estate Investment Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Champion Real Estate Investment Trust and Kite Realty Group Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Champion Real Estate Investment Trust	N/A	N/A	N/A
Kite Realty Group Trust	-2.95%	-0.69%	-0.35%

Valuation & Earnings

This table compares Champion Real Estate Investment Trust and Kite Realty Group Trust’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Champion Real Estate Investment Trust	N/A	N/A	N/A	($0.07)	-2.66
Kite Realty Group Trust	$827.37 million	6.89	$47.50 million	$0.26	99.85

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

Analyst Recommendations

This is a summary of current ratings for Champion Real Estate Investment Trust and Kite Realty Group Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Champion Real Estate Investment Trust	0	0	0	0	N/A
Kite Realty Group Trust	1	1	3	1	2.67

Kite Realty Group Trust has a consensus target price of $26.33, suggesting a potential upside of 1.44%. Given Kite Realty Group Trust’s higher possible upside, analysts clearly believe Kite Realty Group Trust is more favorable than Champion Real Estate Investment Trust.

Institutional & Insider Ownership

6.7% of Champion Real Estate Investment Trust shares are held by institutional investors. Comparatively, 90.8% of Kite Realty Group Trust shares are held by institutional investors. 2.0% of Kite Realty Group Trust shares are held by company 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

Kite Realty Group Trust beats Champion Real Estate Investment Trust on 8 of the 13 factors compared between the two stocks.

About Champion Real Estate Investment Trust

Champion Real Estate Investment Trust is a trust formed to own and invest in income producing office and retail properties. The Trust focuses on Grade A commercial properties in prime locations. It currently offers investors direct exposure to nearly 3 million sq. ft. of prime office and retail floor area. These include two Hong Kong landmark properties, Three Garden Road and Langham Place, as well as a joint venture stake in 66 Shoe Lane in Central London. Since 2015, the Trust has been included in the Constituent of Hang Seng Corporate Sustainability Benchmark Index of Hang Seng Indexes.

About Kite Realty Group Trust

Kite Realty Group Trust (NYSE: KRG) is a real estate investment trust (REIT) headquartered in Indianapolis, IN that is one of the largest publicly traded owners and operators of open-air shopping centers and mixed-use assets. The Company’s primarily grocery-anchored portfolio is located in high-growth Sun Belt and select strategic gateway markets. The combination of necessity-based grocery-anchored neighborhood and community centers, along with vibrant mixed-use assets makes the KRG portfolio an ideal mix for both retailers and consumers. Publicly listed since 2004, KRG has nearly 60 years of experience in developing, constructing and operating real estate. Using operational, investment, development, and redevelopment expertise, KRG continuously optimizes its portfolio to maximize value and return to shareholders. As of December 31, 2023, the Company owned interests in 180 U.S. open-air shopping centers and mixed-use assets, comprising approximately 28.1 million square feet of gross leasable space.