Federal Realty Investment Trust (NYSE:FRT) vs. Weyerhaeuser (NYSE:WY) Head-To-Head Survey

Federal Realty Investment Trust (NYSE:FRT) and Weyerhaeuser (NYSE:WY) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitability.

Profitability

This table compares Federal Realty Investment Trust and Weyerhaeuser’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Federal Realty Investment Trust	24.69%	10.07%	3.45%
Weyerhaeuser	9.89%	6.19%	3.69%

Dividends

Federal Realty Investment Trust pays an annual dividend of $4.40 per share and has a dividend yield of 3.8%. Weyerhaeuser pays an annual dividend of $0.80 per share and has a dividend yield of 2.6%. Federal Realty Investment Trust pays out 156.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Weyerhaeuser pays out 72.7% of its earnings in the form of a dividend. Federal Realty Investment Trust has raised its dividend for 58 consecutive years. Federal Realty Investment Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Federal Realty Investment Trust and Weyerhaeuser, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Federal Realty Investment Trust	0	2	10	0	2.83
Weyerhaeuser	0	5	3	0	2.38

Federal Realty Investment Trust presently has a consensus target price of $121.58, indicating a potential upside of 4.56%. Weyerhaeuser has a consensus target price of $35.83, indicating a potential upside of 16.12%. Given Weyerhaeuser’s higher probable upside, analysts plainly believe Weyerhaeuser is more favorable than Federal Realty Investment Trust.

Earnings & Valuation

This table compares Federal Realty Investment Trust and Weyerhaeuser”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Federal Realty Investment Trust	$1.17 billion	8.27	$236.99 million	$2.81	41.38
Weyerhaeuser	$7.67 billion	2.92	$839.00 million	$1.10	28.05

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

Institutional & Insider Ownership

93.9% of Federal Realty Investment Trust shares are held by institutional investors. Comparatively, 83.0% of Weyerhaeuser shares are held by institutional investors. 1.0% of Federal Realty Investment Trust shares are held by company insiders. Comparatively, 0.3% of Weyerhaeuser shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Federal Realty Investment Trust has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, Weyerhaeuser has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500.

Summary

Federal Realty Investment Trust beats Weyerhaeuser on 11 of the 17 factors compared between the two stocks.

About Federal Realty Investment Trust

Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets from Washington, D.C. to Boston as well as San Francisco and Los Angeles. Founded in 1962, Federal Realty's mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California, Pike & Rose in North Bethesda, Maryland and Assembly Row in Somerville, Massachusetts. These unique and vibrant environments that combine shopping, dining, living and working provide a destination experience valued by their respective communities. Federal Realty's 102 properties include approximately 3,300 tenants, in 26 million commercial square feet, and approximately 3,100 residential units. Federal Realty has increased its quarterly dividends to its shareholders for 56 consecutive years, the longest record in the REIT industry. Federal Realty is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT.

About Weyerhaeuser

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in North America. Our company is a real estate investment trust. In 2022, we generated $10.2 billion in net sales and employed approximately 9,200 people who serve customers worldwide. Our common stock trades on the New York Stock Exchange under the symbol WY.