Head-to-Head Review: Lument Finance Trust (NYSE:LFT) vs. Kimco Realty (NYSE:KIM)


Lument Finance Trust (NYSE:LFT – Get Free Report) and Kimco Realty (NYSE:KIM – Get Free Report) are both financing companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, valuation and dividends.

Insider and institutional ownership

19.5% of the shares of the Lument Finance Trust are held by institutional investors. In comparison, 89.3% of Kimco Realty’s shares are owned by institutional investors. 2.5% of the shares of the Lument Finance Trust are owned by insiders. In comparison, 2.2% of Kimco Realty shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares the net margins, return on equity, and return on assets of Lument Finance Trust and Kimco Realty.

Net margins Return on equity Return on assets
Lument Finance Trust 16.43% 12.64% 1.73%
Kimco Real Estate 19.17% 3.54% 1.92%

Dividends

Lument Finance Trust pays an annual dividend of $0.28 per share and has a dividend yield of 11.5%. Kimco Realty pays an annual dividend of $0.96 per share and has a dividend yield of 5.0%. Lument Finance Trust pays out 87.5% of its earnings as a dividend, suggesting the company may not have enough earnings to cover its dividend payments in the future. Kimco Realty pays out 181.1% of its profits as dividends, suggesting the company may not have enough earnings to cover its dividend payout in the future. Lument Finance Trust has increased its dividend for 1 year in a row and Kimco Realty has increased its dividend for 1 year in a row. Lument Finance Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and volatility

Lument Finance Trust has a beta of 1.07, which means its stock price is 7% more volatile than the S&P 500. In comparison, Kimco Realty has a beta of 1.46, which means its stock price is 46% more volatile than the S&P 500.

Earnings and Valuation

This table compares the revenue, earnings per share and valuation of Lument Finance Trust and Kimco Realty.

Gross income Price/sales ratio Net income Profit per share Price/earnings ratio
Lument Finance Trust $109.19 million 1.17 $19.72 million $0.32 7.63
Kimco Real Estate $1.78 billion 7.24 $654.27 million $0.53 36.13

Kimco Realty has higher sales and profits than Lument Finance Trust. Lument Finance Trust trades at a lower price-to-earnings ratio than Kimco Realty, indicating it is currently the more affordable of the two stocks.

Analyst Ratings

This is an overview of recent ratings and recommendations for Lument Finance Trust and Kimco Realty, as provided by MarketBeat.com.

Sales reviews Hold reviews Buy reviews Strong Buy Ratings Review score
Lument Finance Trust 0 0 3 0 3:00 am
Kimco Real Estate 0 6 5 0 2.45

Lument Finance Trust currently has a consensus price target of $2.58, which suggests a potential upside of 5.87%. Kimco Realty has a consensus price target of $21.48, which suggests a potential upside of 12.16%. Given Kimco Realty’s higher potential upside, analysts clearly believe Kimco Realty is more favorable than Lument Finance Trust.

Resume

Kimco Realty beats Lument Finance Trust on 11 of the 16 factors comparing the two stocks.

About Lument Finance Trust

(Get a free report)

Lument Finance Trust, Inc., a real estate investment trust, focuses on investing, financing and managing a portfolio of commercial real estate debt (CRE) investments in the United States. The company invests primarily in temporary, variable-rate CRE mortgage loans on mid-market multifamily assets; and other CRE-related investments, including mezzanine loans, preferred stock, commercial mortgage-backed securities, fixed-rate loans, construction loans and other CRE debt instruments. Lument Finance Trust, Inc. is qualified as a Real Estate Investment Trust (REIT) under the Internal Revenue Code of 1986. As a REIT, it would not be subject to federal income taxes if it distributes at least 90% of its taxable income to its shareholders. The company was previously known as Hunt Companies Finance Trust, Inc. and changed the name to Lument Finance Trust, Inc. in December 2020. Lument Finance Trust, Inc. was founded in 2012 and is headquartered in New York, New York.

About Kimco Real Estate

(Get a free report)

Kimco Realty Corp. is a real estate investment trust (REIT) headquartered in New Hyde Park, NY, and is one of the largest publicly traded owners and operators of outdoor shopping centers in North America. As of December 31, 2018, the company owned interests in 437 U.S. shopping centers, totaling 76 million square feet of leasable space, primarily concentrated in the largest urban markets.



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