Kilroy Realty (NYSE:KRC) versus W. P. Carey (NYSE:WPC) Head-To-Head Contrast

W. P. Carey (NYSE:WPC) and Kilroy Realty (NYSE:KRC) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.

Earnings and Valuation

This table compares W. P. Carey and Kilroy Realty”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
W. P. Carey	$1.64 billion	7.67	$708.33 million	$2.63	21.86
Kilroy Realty	$1.11 billion	4.39	$212.24 million	$1.74	23.93

W. P. Carey has higher revenue and earnings than Kilroy Realty. W. P. Carey is trading at a lower price-to-earnings ratio than Kilroy Realty, indicating that it is currently the more affordable of the two stocks.

Dividends

W. P. Carey pays an annual dividend of $3.50 per share and has a dividend yield of 6.1%. Kilroy Realty pays an annual dividend of $2.16 per share and has a dividend yield of 5.2%. W. P. Carey pays out 133.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kilroy Realty pays out 124.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility and Risk

W. P. Carey has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Kilroy Realty has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for W. P. Carey and Kilroy Realty, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
W. P. Carey	0	7	2	0	2.22
Kilroy Realty	0	6	2	0	2.25

W. P. Carey currently has a consensus target price of $63.25, suggesting a potential upside of 10.04%. Kilroy Realty has a consensus target price of $39.29, suggesting a potential downside of 5.63%. Given W. P. Carey’s higher possible upside, equities analysts plainly believe W. P. Carey is more favorable than Kilroy Realty.

Insider and Institutional Ownership

73.7% of W. P. Carey shares are held by institutional investors. Comparatively, 94.2% of Kilroy Realty shares are held by institutional investors. 1.1% of W. P. Carey shares are held by insiders. Comparatively, 2.5% of Kilroy Realty shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares W. P. Carey and Kilroy Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
W. P. Carey	34.83%	6.50%	3.18%
Kilroy Realty	17.91%	3.52%	1.73%

Summary

W. P. Carey beats Kilroy Realty on 9 of the 15 factors compared between the two stocks.

About W. P. Carey

W. P. Carey ranks among the largest net lease REITs with a well-diversified portfolio of high-quality, operationally critical commercial real estate, which includes 1,424 net lease properties covering approximately 173 million square feet and a portfolio of 89 self-storage operating properties as of December 31, 2023. With offices in New York, London, Amsterdam and Dallas, the company remains focused on investing primarily in single-tenant, industrial, warehouse and retail properties located in the U.S. and Northern and Western Europe, under long-term net leases with built-in rent escalations.

About Kilroy Realty

Kilroy Realty Corporation (NYSE: KRC, the company, Kilroy) is a leading U.S. landlord and developer, with operations in San Diego, Greater Los Angeles, the San Francisco Bay Area, Greater Seattle and Austin. The company has earned global recognition for sustainability, building operations, innovation and design. As a pioneer and innovator in the creation of a more sustainable real estate industry, the company's approach to modern business environments helps drive creativity and productivity for some of the world's leading technology, entertainment, life science and business services companies. The company is a publicly traded real estate investment trust (REIT) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office, life science and mixed-use projects. As of December 31, 2023, Kilroy's stabilized portfolio totaled approximately 17.0 million square feet of primarily office and life science space that was 85.0% occupied and 86.4% leased. The company also had approximately 1,000 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 92.5%. In addition, the company had two in-process life science redevelopment projects totaling approximately 100,000 square feet with total estimated redevelopment costs of $80.0 million and one approximately 875,000 square foot in-process development project with a total estimated investment of $1.0 billion.