Brixmor Property Group (NYSE:BRX) and CubeSmart (NYSE:CUBE) are both mid-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.

Earnings and Valuation

This table compares Brixmor Property Group and CubeSmart’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brixmor Property Group $1.17 billion 2.82 $274.77 million $1.91 5.79
CubeSmart $643.91 million 7.29 $169.12 million $1.69 14.34

Brixmor Property Group has higher revenue and earnings than CubeSmart. Brixmor Property Group is trading at a lower price-to-earnings ratio than CubeSmart, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Brixmor Property Group has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, CubeSmart has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500.

Profitability

This table compares Brixmor Property Group and CubeSmart’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brixmor Property Group 23.52% 9.94% 3.36%
CubeSmart 26.26% 9.50% 4.30%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Brixmor Property Group and CubeSmart, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brixmor Property Group 1 10 3 0 2.14
CubeSmart 4 3 1 0 1.63

Brixmor Property Group currently has a consensus target price of $19.69, indicating a potential upside of 78.05%. CubeSmart has a consensus target price of $30.33, indicating a potential upside of 25.14%. Given Brixmor Property Group’s stronger consensus rating and higher possible upside, research analysts plainly believe Brixmor Property Group is more favorable than CubeSmart.

Insider & Institutional Ownership

99.2% of Brixmor Property Group shares are owned by institutional investors. Comparatively, 99.0% of CubeSmart shares are owned by institutional investors. 0.4% of Brixmor Property Group shares are owned by company insiders. Comparatively, 1.0% of CubeSmart shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Brixmor Property Group pays an annual dividend of $1.14 per share and has a dividend yield of 10.3%. CubeSmart pays an annual dividend of $1.32 per share and has a dividend yield of 5.4%. Brixmor Property Group pays out 59.7% of its earnings in the form of a dividend. CubeSmart pays out 78.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brixmor Property Group has increased its dividend for 4 consecutive years and CubeSmart has increased its dividend for 8 consecutive years. Brixmor Property Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Brixmor Property Group beats CubeSmart on 11 of the 17 factors compared between the two stocks.

About Brixmor Property Group

Brixmor (NYSE: BRX) is a real estate investment trust (REIT) that owns and operates a high-quality, national portfolio of open-air shopping centers. Its 425 retail centers comprise approximately 74 million square feet of prime retail space in established trade areas. The Company strives to own and operate shopping centers that reflect Brixmor's vision "to be the center of the communities we serve" and are home to a diverse mix of thriving national, regional and local retailers. Brixmor is a proud real estate partner to more than 5,000 retailers including The TJX Companies, The Kroger Co., Publix Super Markets, Wal-Mart, Ross Stores and L.A. Fitness.

About CubeSmart

CubeSmart is a self-administered and self-managed real estate investment trust. The Company's self-storage properties are designed to offer affordable, easily accessible and secure storage space for residential and commercial customers. According to the 2019 Self-Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the United States.

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