CTO Realty Growth (CTO) versus Its Rivals Critical Contrast

CTO Realty Growth (NYSE:CTO) is one of 85 public companies in the “Retail REITs” industry, but how does it weigh in compared to its peers? We will compare CTO Realty Growth to related businesses based on the strength of its profitability, valuation, institutional ownership, earnings, dividends, risk and analyst recommendations.

Insider and Institutional Ownership

67.2% of CTO Realty Growth shares are owned by institutional investors. Comparatively, 59.3% of shares of all “Retail REITs” companies are owned by institutional investors. 4.5% of CTO Realty Growth shares are owned by insiders. Comparatively, 11.5% of shares of all “Retail REITs” companies are owned 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.

Dividends

CTO Realty Growth pays an annual dividend of $1.52 per share and has a dividend yield of 7.5%. CTO Realty Growth pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Retail REITs” companies pay a dividend yield of 230.1% and pay out 78.0% of their earnings in the form of a dividend. CTO Realty Growth lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a summary of current recommendations and price targets for CTO Realty Growth and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CTO Realty Growth	0	2	3	2	3.00
CTO Realty Growth Competitors	963	3975	3450	138	2.32

CTO Realty Growth presently has a consensus price target of $24.00, indicating a potential upside of 17.73%. As a group, “Retail REITs” companies have a potential upside of 8.76%. Given CTO Realty Growth’s stronger consensus rating and higher possible upside, analysts plainly believe CTO Realty Growth is more favorable than its peers.

Valuation & Earnings

This table compares CTO Realty Growth and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
CTO Realty Growth	$149.54 million	$10.09 million	17.88
CTO Realty Growth Competitors	$816.04 million	$253.68 million	9.06

CTO Realty Growth’s peers have higher revenue and earnings than CTO Realty Growth. CTO Realty Growth is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

CTO Realty Growth has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, CTO Realty Growth’s peers have a beta of 0.88, indicating that their average stock price is 12% less volatile than the S&P 500.

Profitability

This table compares CTO Realty Growth and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CTO Realty Growth	26.12%	7.15%	3.26%
CTO Realty Growth Competitors	31.33%	6.25%	3.34%

Summary

CTO Realty Growth peers beat CTO Realty Growth on 8 of the 15 factors compared.

CTO Realty Growth Company Profile

CTO Realty Growth, Inc. is a publicly traded real estate investment trust that owns and operates a portfolio of high-quality, retail-based properties located primarily in higher growth markets in the United States. CTO also externally manages and owns a meaningful interest in Alpine Income Property Trust, Inc. (NYSE: PINE), a publicly traded net lease REIT.