Reviewing Getty Realty (GTY) & General Growth Properties (GGP)

Getty Realty (NYSE: GTY) and General Growth Properties (NYSE:GGP) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.

Analyst Recommendations

This is a summary of current ratings and target prices for Getty Realty and General Growth Properties, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Getty Realty 1 0 2 0 2.33
General Growth Properties 1 5 6 0 2.42

Getty Realty presently has a consensus target price of $27.33, suggesting a potential downside of 2.14%. General Growth Properties has a consensus target price of $25.50, suggesting a potential upside of 8.97%. Given General Growth Properties’ stronger consensus rating and higher probable upside, analysts clearly believe General Growth Properties is more favorable than Getty Realty.

Valuation & Earnings

This table compares Getty Realty and General Growth Properties’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Getty Realty $115.27 million 9.60 $38.41 million $1.19 23.47
General Growth Properties $2.35 billion 9.43 $1.29 billion $0.72 32.50

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

Risk & Volatility

Getty Realty has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, General Growth Properties has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.

Institutional & Insider Ownership

61.5% of Getty Realty shares are held by institutional investors. Comparatively, 97.5% of General Growth Properties shares are held by institutional investors. 22.3% of Getty Realty shares are held by insiders. Comparatively, 35.6% of General Growth Properties shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Getty Realty and General Growth Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Getty Realty 36.66% 9.62% 4.89%
General Growth Properties 29.96% 8.34% 3.05%

Dividends

Getty Realty pays an annual dividend of $1.12 per share and has a dividend yield of 4.0%. General Growth Properties pays an annual dividend of $0.88 per share and has a dividend yield of 3.8%. Getty Realty 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. General Growth Properties pays out 122.2% 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 has increased its dividend for 5 consecutive years and General Growth Properties has increased its dividend for 4 consecutive years. Getty Realty is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Getty Realty beats General Growth Properties on 9 of the 17 factors compared between the two stocks.

Getty Realty 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.

General Growth Properties Company Profile

GGP Inc. (GGP), formerly General Growth Properties, Inc., is a self-administered and self-managed real estate investment trust (REIT). The Company operates as a holding company, which is engaged in the operation, development and management of retail and other rental properties, primarily regional malls. As of December 31, 2016, the Company owned, either entirely or with joint venture partners, 127 retail properties located throughout the United States comprising approximately 125 million square feet of gross leasable area (GLA). As of December 31, 2016, the Company’s retail properties included 200 Lafayette, The Shoppes at Buckland Hills, Northridge Fashion Center, Brass Mill Center, Jordan Creek Town Center, Westroads Mall and Stonestown Galleria. The Company’s business is conducted through GGP Operating Partnership, LP (GGPOP), GGP Nimbus, LP (GGPN) and GGP Limited Partnership (GGPLP, and together with GGPN and GGPOP, the Operating Partnerships), subsidiaries of GGP.

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