Getty Realty Corporation (GTY) versus Brixmor Property Group (BRX) Critical Review
Getty Realty Corporation (NYSE: GTY) and Brixmor Property Group (NYSE:BRX) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.
Getty Realty Corporation pays an annual dividend of $1.12 per share and has a dividend yield of 4.0%. Brixmor Property Group pays an annual dividend of $1.04 per share and has a dividend yield of 5.7%. Getty Realty Corporation pays out 94.1% 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 pays out 98.1% 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. Brixmor Property Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional and Insider Ownership
52.3% of Getty Realty Corporation shares are owned by institutional investors. Comparatively, 99.5% of Brixmor Property Group shares are owned by institutional investors. 22.3% of Getty Realty Corporation shares are owned by insiders. Comparatively, 0.3% of Brixmor Property Group shares are owned by 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.
This table compares Getty Realty Corporation and Brixmor Property Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Getty Realty Corporation||36.66%||9.62%||4.89%|
|Brixmor Property Group||25.14%||11.08%||3.48%|
Earnings & Valuation
This table compares Getty Realty Corporation and Brixmor Property Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Getty Realty Corporation||$115.27 million||9.62||$38.41 million||$1.19||23.52|
|Brixmor Property Group||$1.28 billion||4.36||$275.62 million||$1.06||17.21|
Brixmor Property Group has higher revenue and earnings than Getty Realty Corporation. Brixmor Property Group is trading at a lower price-to-earnings ratio than Getty Realty Corporation, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations for Getty Realty Corporation and Brixmor Property Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Getty Realty Corporation||1||0||2||0||2.33|
|Brixmor Property Group||0||5||6||0||2.55|
Getty Realty Corporation presently has a consensus target price of $27.33, indicating a potential downside of 2.35%. Brixmor Property Group has a consensus target price of $23.11, indicating a potential upside of 26.71%. Given Brixmor Property Group’s stronger consensus rating and higher probable upside, analysts plainly believe Brixmor Property Group is more favorable than Getty Realty Corporation.
Volatility & Risk
Getty Realty Corporation has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500. Comparatively, Brixmor Property Group has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500.
Brixmor Property Group beats Getty Realty Corporation on 9 of the 17 factors compared between the two stocks.
About Getty Realty Corporation
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.
About Brixmor Property Group
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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