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

Profitability

This table compares Getty Realty and GGP’s 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%
GGP 29.96% 8.34% 3.05%

Dividends

Getty Realty pays an annual dividend of $1.12 per share and has a dividend yield of 4.3%. GGP 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. GGP 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 raised its dividend for 4 consecutive years and GGP has raised its dividend for 5 consecutive years. Getty Realty is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

61.2% of Getty Realty shares are held by institutional investors. Comparatively, 97.1% of GGP shares are held by institutional investors. 22.3% of Getty Realty shares are held by company insiders. Comparatively, 35.6% of GGP shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Getty Realty and GGP, as provided by MarketBeat.com.

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

Getty Realty currently has a consensus target price of $27.33, indicating a potential upside of 3.73%. GGP has a consensus target price of $25.50, indicating a potential upside of 10.39%. Given GGP’s stronger consensus rating and higher probable upside, analysts plainly believe GGP is more favorable than Getty Realty.

Volatility & Risk

Getty Realty has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, GGP has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Earnings and Valuation

This table compares Getty Realty and GGP’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Getty Realty $115.27 million 9.05 $38.41 million $1.19 22.14
GGP $2.35 billion 9.31 $1.29 billion $0.72 32.08

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

Summary

GGP beats Getty Realty on 10 of the 17 factors compared between the two stocks.

About Getty Realty

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 GGP

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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