Reviewing Kite Realty Group Trust (NYSE:KRG) & First Industrial Realty Trust (NYSE:FR)

Kite Realty Group Trust (NYSE:KRG) and First Industrial Realty Trust (NYSE:FR) are both mid-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.

Analyst Ratings

This is a breakdown of current ratings and target prices for Kite Realty Group Trust and First Industrial Realty Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kite Realty Group Trust	0	5	2	1	2.50
First Industrial Realty Trust	0	7	7	0	2.50

Kite Realty Group Trust currently has a consensus target price of $28.13, indicating a potential upside of 22.66%. First Industrial Realty Trust has a consensus target price of $58.31, indicating a potential upside of 2.17%. Given Kite Realty Group Trust’s higher probable upside, equities research analysts clearly believe Kite Realty Group Trust is more favorable than First Industrial Realty Trust.

Profitability

This table compares Kite Realty Group Trust and First Industrial Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kite Realty Group Trust	0.48%	0.12%	0.06%
First Industrial Realty Trust	42.94%	10.64%	5.51%

Insider and Institutional Ownership

90.8% of Kite Realty Group Trust shares are owned by institutional investors. Comparatively, 99.8% of First Industrial Realty Trust shares are owned by institutional investors. 2.0% of Kite Realty Group Trust shares are owned by insiders. Comparatively, 0.9% of First Industrial Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Kite Realty Group Trust pays an annual dividend of $1.08 per share and has a dividend yield of 4.7%. First Industrial Realty Trust pays an annual dividend of $1.78 per share and has a dividend yield of 3.1%. Kite Realty Group Trust pays out 5,400.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First Industrial Realty Trust pays out 81.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First Industrial Realty Trust has increased its dividend for 12 consecutive years.

Valuation and Earnings

This table compares Kite Realty Group Trust and First Industrial Realty Trust”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kite Realty Group Trust	$841.84 million	5.98	$4.07 million	$0.02	1,146.45
First Industrial Realty Trust	$669.64 million	11.28	$287.55 million	$2.18	26.18

First Industrial Realty Trust has lower revenue, but higher earnings than Kite Realty Group Trust. First Industrial Realty 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.

Risk & Volatility

Kite Realty Group Trust has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500. Comparatively, First Industrial Realty Trust has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.

Summary

First Industrial Realty Trust beats Kite Realty Group Trust on 10 of the 17 factors compared between the two stocks.

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.

About First Industrial Realty Trust

First Industrial Realty Trust, Inc. (NYSE: FR) is a leading U.S.-only owner, operator, developer and acquirer of logistics properties. Through our fully integrated operating and investing platform, we provide high quality facilities and industry-leading customer service to multinational corporations and regional firms that are essential for their supply chains. Our portfolio and new investments are concentrated in 15 target MSAs with an emphasis on supply-constrained, coastally oriented markets. In total, we own and have under development approximately 68.5 million square feet of industrial space as of December 31, 2023.