Urban Edge Properties (NYSE:UE) and Getty Realty Corporation (GTY) Critical Contrast

Getty Realty Corporation (NYSE: GTY) and Urban Edge Properties (NYSE:UE) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

51.7% of Getty Realty Corporation shares are held by institutional investors. Comparatively, 83.5% of Urban Edge Properties shares are held by institutional investors. 22.3% of Getty Realty Corporation shares are held by company insiders. Comparatively, 4.7% of Urban Edge Properties shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Getty Realty Corporation and Urban Edge Properties’ 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%
Urban Edge Properties 27.04% 16.72% 4.87%

Valuation & Earnings

This table compares Getty Realty Corporation and Urban Edge Properties’ gross 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 9.14 $78.24 million $1.21 22.03
Urban Edge Properties $379.02 million 6.87 $230.14 million $1.01 23.98

Urban Edge Properties has higher revenue and earnings than Getty Realty Corporation. Getty Realty Corporation is trading at a lower price-to-earnings ratio than Urban Edge Properties, 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 4.2%. Urban Edge Properties pays an annual dividend of $0.88 per share and has a dividend yield of 3.6%. 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. Urban Edge Properties pays out 87.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Urban Edge Properties has increased its dividend for 4 consecutive years.

Risk and Volatility

Getty Realty Corporation has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Urban Edge Properties has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Getty Realty Corporation and Urban Edge Properties, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Getty Realty Corporation 1 0 1 0 2.00
Urban Edge Properties 1 0 0 0 1.00

Getty Realty Corporation currently has a consensus price target of $26.00, indicating a potential downside of 2.48%. Urban Edge Properties has a consensus price target of $25.00, indicating a potential upside of 3.22%. Given Urban Edge Properties’ higher possible upside, analysts plainly believe Urban Edge Properties is more favorable than Getty Realty Corporation.

Summary

Urban Edge Properties beats Getty Realty Corporation on 9 of the 17 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.

Urban Edge Properties Company Profile

Urban Edge Properties is a real estate investment trust. The Company is focused on managing, developing, redeveloping and acquiring retail real estate in urban communities, in the New York metropolitan region. Urban Edge Properties LP (UELP or the Operating Partnership) serves as its partnership subsidiary and owns, through affiliates, all of its real estate properties and other assets. As of December 31, 2016, its portfolio consisted of 79 shopping centers, three malls and a warehouse park adjacent to one of its centers totaling 14.8 million square feet. As of December 31, 2016, it leased 19 properties under ground and/or building leases. As of December 31, 2016, it had approximately 1,200 leases. Its shopping centers and malls are located at California, Connecticut, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, South Carolina, Virginia and Puerto Rico. Its shopping centers and malls include Signal Hill, Vallejo, Walnut Creek, Newington and others.

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