Critical Review: Ramco-Gershenson Properties Trust (RPT) & Brixmor Property Group (BRX)
Ramco-Gershenson Properties Trust (NYSE: RPT) and Brixmor Property Group (NYSE:BRX) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.
This is a summary of current ratings and recommmendations for Ramco-Gershenson Properties Trust and Brixmor Property Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ramco-Gershenson Properties Trust||1||4||3||0||2.25|
|Brixmor Property Group||0||5||6||0||2.55|
Ramco-Gershenson Properties Trust currently has a consensus target price of $15.14, suggesting a potential upside of 13.60%. Brixmor Property Group has a consensus target price of $23.50, suggesting a potential upside of 21.57%. Given Brixmor Property Group’s stronger consensus rating and higher possible upside, analysts clearly believe Brixmor Property Group is more favorable than Ramco-Gershenson Properties Trust.
This table compares Ramco-Gershenson Properties Trust and Brixmor Property Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ramco-Gershenson Properties Trust||15.05%||4.99%||1.86%|
|Brixmor Property Group||23.06%||10.22%||3.19%|
Ramco-Gershenson Properties Trust pays an annual dividend of $0.88 per share and has a dividend yield of 6.6%. Brixmor Property Group pays an annual dividend of $1.04 per share and has a dividend yield of 5.4%. Ramco-Gershenson Properties Trust pays out 214.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brixmor Property Group pays out 106.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brixmor Property Group has raised its dividend for 4 consecutive years.
Valuation and Earnings
This table compares Ramco-Gershenson Properties Trust and Brixmor Property Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ramco-Gershenson Properties Trust||$263.77 million||4.01||$165.05 million||$0.41||32.51|
|Brixmor Property Group||$1.29 billion||4.57||$840.64 million||$0.98||19.72|
Brixmor Property Group has higher revenue and earnings than Ramco-Gershenson Properties Trust. Brixmor Property Group is trading at a lower price-to-earnings ratio than Ramco-Gershenson Properties Trust, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
98.7% of Ramco-Gershenson Properties Trust shares are owned by institutional investors. 1.6% of Ramco-Gershenson Properties Trust shares are owned by company insiders. Comparatively, 0.3% of Brixmor Property Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Ramco-Gershenson Properties Trust has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, Brixmor Property Group has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.
Brixmor Property Group beats Ramco-Gershenson Properties Trust on 12 of the 17 factors compared between the two stocks.
Ramco-Gershenson Properties Trust Company Profile
Ramco-Gershenson Properties Trust is an equity real estate investment trust. The Company’s primary business is the ownership, management, redevelopment, development and operation of retail shopping centers. As of December 31, 2016, it owned and managed multi-anchored shopping centers in 12 metropolitan markets in the United States. It conducts its business through its operating partnership, Ramco-Gershenson Properties, L.P. It invests in large, multi-anchored shopping centers that include national chain store tenants and supermarket tenants. National chain anchor tenants in its centers include, among others, Bed Bath and Beyond, Dick’s Sporting Goods, and Home Depot. Supermarket anchor tenants in its centers include, among others, Publix Super Market, Whole Foods, Kroger and Sprouts. Its shopping centers are located in metropolitan markets, such as Metro Detroit, Southeast Florida, Greater Denver, Cincinnati, St. Louis, Jacksonville, Tampa/Lakeland, Milwaukee, Chicago and Atlanta.
Brixmor Property Group Company Profile
Brixmor Property Group Inc. is an internally managed real estate investment trust. The Company conducts its operations primarily through Brixmor Operating Partnership LP and subsidiaries (collectively, the Operating Partnership). As of December 31, 2016, it owned interests in 512 shopping centers (the Portfolio) with approximately 86 million square feet of gross leasable area (GLA), including 511 shopping centers and one shopping center held through an unconsolidated joint venture. With an average shopping center size of 167,982 square feet as of December 31, 2016, the Company’s portfolio consisted predominantly of community and neighborhood shopping centers. As of December 31, 2016, the Company’s properties were located in various states of the United States, such as Texas, Florida, California, New York, Illinois, Georgia, New Jersey, Ohio, North Carolina, Michigan, Connecticut, Tennessee, Kentucky, Colorado, Arizona, Delaware, West Virginia, Vermont, Maine, Oklahoma and New Mexico.
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