Head to Head Analysis: Brixmor Property Group (BRX) & Taubman Centers (TCO)
Taubman Centers (NYSE: TCO) and Brixmor Property Group (NYSE:BRX) are both mid-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.
Risk & Volatility
Taubman Centers has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, Brixmor Property Group has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.
Institutional & Insider Ownership
98.5% of Taubman Centers shares are owned by institutional investors. 31.2% of Taubman Centers shares are owned by insiders. Comparatively, 0.3% of Brixmor Property Group shares 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.
Taubman Centers pays an annual dividend of $2.50 per share and has a dividend yield of 5.1%. Brixmor Property Group pays an annual dividend of $1.04 per share and has a dividend yield of 5.5%. Taubman Centers pays out 193.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Taubman Centers has increased its dividend for 7 consecutive years. Brixmor Property Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Taubman Centers and Brixmor Property Group’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%|
Earnings and Valuation
This table compares Taubman Centers and Brixmor Property Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Taubman Centers||$606.47 million||4.93||$311.97 million||$1.29||38.16|
|Brixmor Property Group||$1.29 billion||4.44||$840.64 million||$0.98||19.15|
Brixmor Property Group has higher revenue and earnings than Taubman Centers. Brixmor Property Group is trading at a lower price-to-earnings ratio than Taubman Centers, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations and price targets for Taubman Centers and Brixmor Property Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brixmor Property Group||0||5||6||0||2.55|
Taubman Centers presently has a consensus price target of $66.17, indicating a potential upside of 34.40%. Brixmor Property Group has a consensus price target of $23.50, indicating a potential upside of 25.20%. Given Taubman Centers’ higher probable upside, equities research analysts clearly believe Taubman Centers is more favorable than Brixmor Property Group.
Brixmor Property Group beats Taubman Centers on 10 of the 17 factors compared between the two stocks.
Taubman Centers Company Profile
Taubman Centers, Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company’s segment is focused on owning, developing and managing regional shopping centers. The Taubman Realty Group Limited Partnership (the Operating Partnership or TRG) is majority-owned partnership subsidiary of the Company that owns direct or indirect interests in all of its real estate properties. The Company owns, leases, acquires, disposes of, develops, expands and manages regional and super-regional shopping centers and interests therein. Its owned portfolio of operating centers as of December 31, 2016 consisted of 23 urban and suburban shopping centers operating in 11 the United States states, Puerto Rico, South Korea, and China. The consolidated businesses consist of shopping centers and entities that are controlled by ownership or contractual agreements, The Taubman Company LLC (Manager), and Taubman Properties Asia LLC and its subsidiaries (Taubman Asia).
Brixmor Property Group Company Profile
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.
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