Getty Realty Corporation (NYSE: GTY) and Regency Centers Corporation (NYSE:REG) are both finance 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.

Profitability

This table compares Getty Realty Corporation and Regency Centers Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Getty Realty Corporation 36.50% 10.28% 5.06%
Regency Centers Corporation 13.19% 2.20% 1.26%

Valuation and Earnings

This table compares Getty Realty Corporation and Regency Centers Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Getty Realty Corporation $114.91 million 9.72 $78.24 million $1.21 23.43
Regency Centers Corporation $798.89 million 13.52 $508.87 million $0.60 106.07

Regency Centers Corporation has higher revenue and earnings than Getty Realty Corporation. Getty Realty Corporation is trading at a lower price-to-earnings ratio than Regency Centers Corporation, indicating that it is currently the more affordable of the two stocks.

Dividends

Getty Realty Corporation pays an annual dividend of $1.12 per share and has a dividend yield of 4.0%. Regency Centers Corporation pays an annual dividend of $2.12 per share and has a dividend yield of 3.3%. Getty Realty Corporation pays out 92.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Regency Centers Corporation pays out 353.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Getty Realty Corporation has increased its dividend for 3 consecutive years and Regency Centers Corporation has increased its dividend for 4 consecutive years. Getty Realty Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Getty Realty Corporation has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, Regency Centers Corporation has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.

Institutional & Insider Ownership

52.1% of Getty Realty Corporation shares are held by institutional investors. Comparatively, 91.5% of Regency Centers Corporation shares are held by institutional investors. 22.3% of Getty Realty Corporation shares are held by company insiders. Comparatively, 12.7% of Regency Centers Corporation 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.

Analyst Recommendations

This is a summary of current ratings for Getty Realty Corporation and Regency Centers Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Getty Realty Corporation 1 0 2 0 2.33
Regency Centers Corporation 1 4 5 1 2.55

Getty Realty Corporation presently has a consensus target price of $27.33, suggesting a potential downside of 3.59%. Regency Centers Corporation has a consensus target price of $72.15, suggesting a potential upside of 13.37%. Given Regency Centers Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Regency Centers Corporation is more favorable than Getty Realty Corporation.

Summary

Regency Centers Corporation beats Getty Realty Corporation on 11 of the 18 factors compared between the two stocks.

Getty Realty Corporation Company Profile

Getty Realty Corp. is a real estate investment trust (REIT). The Company specializes in the ownership, leasing and financing of convenience store and gasoline station properties. As of June 30, 2017, the Company’s 825 properties were located in 26 states across the United States and Washington, District of Columbia. Its properties are operated under a range of brands, including 76, Aloha, BP, Citgo, Conoco, Exxon, Getty, Mobil, RaceTrac, Shell and Valero. The Company owns the Getty name in connection with its real estate and the petroleum marketing business in the United States. As of June 30, 2017, the Company had owned 738 properties and leased 87 properties from third-party landlords. Its typical property is used as a convenience store and gasoline station. Its properties are concentrated in the Northeast and Mid-Atlantic regions.

Regency Centers Corporation Company Profile

Regency Centers Corporation is a real estate investment trust (REIT). The Company is the general partner of Regency Centers, L.P. (the Operating Partnership). The Company is engaged in the ownership, management, leasing, acquisition and development of retail shopping centers through the Operating Partnership. The Company’s properties include Palm Valley Marketplace, Shops at Arizona, Amerige Heights Town Center, Clayton Valley Shopping Center, Five Points Shopping Center, French Valley Village Center, Hasley Canyon Village, Pleasant Hill Shopping Center, Snell & Branham Plaza, Applewood Shopping Center, Kent Place, Black Rock, Spring Valley Shopping Center and Pebblebrook Plaza. As of December 31, 2016, the Company owned all of the Preferred Units of the Operating Partnership and approximately 99.9% of the Units in the Operating Partnership. As of December 31, 2016, it owned direct or partial interests in 307 shopping centers.

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