Brixmor Property Group (BRX) versus Ramco-Gershenson Properties Trust (RPT) Head to Head Survey

Brixmor Property Group (NYSE: BRX) and Ramco-Gershenson Properties Trust (NYSE:RPT) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Brixmor Property Group and Ramco-Gershenson Properties Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brixmor Property Group 0 5 6 0 2.55
Ramco-Gershenson Properties Trust 1 4 3 0 2.25

Brixmor Property Group presently has a consensus target price of $23.50, suggesting a potential upside of 19.29%. Ramco-Gershenson Properties Trust has a consensus target price of $15.14, suggesting a potential upside of 12.00%. Given Brixmor Property Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe Brixmor Property Group is more favorable than Ramco-Gershenson Properties Trust.

Volatility & Risk

Brixmor Property Group has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Ramco-Gershenson Properties Trust has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.

Institutional & Insider Ownership

98.7% of Ramco-Gershenson Properties Trust shares are held by institutional investors. 0.3% of Brixmor Property Group shares are held by insiders. Comparatively, 3.7% of Ramco-Gershenson Properties Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Brixmor Property Group and Ramco-Gershenson Properties Trust’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Brixmor Property Group $1.29 billion 4.66 $840.64 million $0.98 20.10
Ramco-Gershenson Properties Trust $263.77 million 4.07 $165.05 million $0.41 32.98

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.

Profitability

This table compares Brixmor Property Group and Ramco-Gershenson Properties Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brixmor Property Group 23.06% 10.22% 3.19%
Ramco-Gershenson Properties Trust 15.05% 4.99% 1.86%

Dividends

Brixmor Property Group pays an annual dividend of $1.04 per share and has a dividend yield of 5.3%. Ramco-Gershenson Properties Trust pays an annual dividend of $0.88 per share and has a dividend yield of 6.5%. 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. 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. Ramco-Gershenson Properties Trust has raised its dividend for 4 consecutive years. Ramco-Gershenson Properties Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Brixmor Property Group beats Ramco-Gershenson Properties Trust on 11 of the 17 factors compared between the two stocks.

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.

About Ramco-Gershenson Properties Trust

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.

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