DDR (NYSE: DDR) and Getty Realty (NYSE:GTY) are both financials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, earnings, profitability, institutional ownership and valuation.
Insider and Institutional Ownership
78.9% of DDR shares are owned by institutional investors. Comparatively, 62.8% of Getty Realty shares are owned by institutional investors. 16.1% of DDR shares are owned by company insiders. Comparatively, 22.3% of Getty Realty shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
DDR has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Getty Realty has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500.
Earnings and Valuation
This table compares DDR and Getty Realty’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|DDR||$887.95 million||3.21||$60.01 million||($0.74)||-10.45|
|Getty Realty||$115.27 million||8.49||$38.41 million||$1.16||21.31|
DDR has higher revenue and earnings than Getty Realty. DDR is trading at a lower price-to-earnings ratio than Getty Realty, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations for DDR and Getty Realty, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
DDR currently has a consensus target price of $10.63, indicating a potential upside of 37.45%. Getty Realty has a consensus target price of $27.33, indicating a potential upside of 10.57%. Given DDR’s higher possible upside, equities research analysts clearly believe DDR is more favorable than Getty Realty.
This table compares DDR and Getty Realty’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
DDR pays an annual dividend of $0.76 per share and has a dividend yield of 9.8%. Getty Realty pays an annual dividend of $1.28 per share and has a dividend yield of 5.2%. DDR pays out -102.7% of its earnings in the form of a dividend. Getty Realty pays out 110.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DDR has raised its dividend for 7 consecutive years and Getty Realty has raised its dividend for 5 consecutive years. DDR is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
DDR beats Getty Realty on 9 of the 17 factors compared between the two stocks.
DDR Corp. is a self-administered and self-managed real estate investment trust. It operates through two segments: shopping centers and loan investments. It is in the business of acquiring, owning, developing, redeveloping, expanding, leasing and managing shopping centers. As of December 31, 2016, it owned and managed approximately 106 million total square feet of gross leasable area (GLA). As of December 31, 2016, the portfolio properties included 319 shopping centers (including 152 centers owned through joint ventures). As of December 31, 2016, the portfolio properties also included over 650 acres of undeveloped land, including parcels located adjacent to certain of the shopping centers. As of December 31, 2016, the portfolio properties aggregated to 75.8 million square feet of Company-owned GLA located in 35 states, plus Puerto Rico. These centers are in the Southeast and Midwest, with significant concentrations in Florida, Georgia, Ohio and North Carolina, as well as Puerto Rico.
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.
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