Brixmor Property Group (BRX) and Federal Realty Investment Trust (FRT) Critical Comparison

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Brixmor Property Group and Federal Realty Investment Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brixmor Property Group 0 8 6 0 2.43
Federal Realty Investment Trust 0 4 9 0 2.69

Brixmor Property Group presently has a consensus target price of $18.39, suggesting a potential upside of 4.42%. Federal Realty Investment Trust has a consensus target price of $139.45, suggesting a potential upside of 4.48%. Given Federal Realty Investment Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Federal Realty Investment Trust is more favorable than Brixmor Property Group.

Dividends

Brixmor Property Group pays an annual dividend of $1.12 per share and has a dividend yield of 6.4%. Federal Realty Investment Trust pays an annual dividend of $4.08 per share and has a dividend yield of 3.1%. Brixmor Property Group pays out 60.5% of its earnings in the form of a dividend. Federal Realty Investment Trust pays out 65.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Brixmor Property Group has increased its dividend for 3 consecutive years and Federal Realty Investment Trust has increased its dividend for 51 consecutive years. Brixmor Property Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Brixmor Property Group and Federal Realty Investment Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brixmor Property Group 29.67% 12.82% 4.24%
Federal Realty Investment Trust 26.42% 10.73% 3.84%

Earnings & Valuation

This table compares Brixmor Property Group and Federal Realty Investment Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brixmor Property Group $1.23 billion 4.26 $366.28 million $1.85 9.52
Federal Realty Investment Trust $915.44 million 10.84 $241.90 million $6.23 21.43

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

Insider and Institutional Ownership

97.7% of Brixmor Property Group shares are held by institutional investors. Comparatively, 89.7% of Federal Realty Investment Trust shares are held by institutional investors. 0.3% of Brixmor Property Group shares are held by insiders. Comparatively, 1.0% of Federal Realty Investment Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Brixmor Property Group has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Federal Realty Investment Trust has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500.

Summary

Brixmor Property Group beats Federal Realty Investment Trust on 9 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 Federal Realty Investment Trust

Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail based properties located primarily in major coastal markets from Washington, D.C. to Boston as well as San Francisco and Los Angeles. Founded in 1962, Federal Realty's mission is to deliver long term, sustainable growth through investing in densely populated, affluent communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California, Pike & Rose in North Bethesda, Maryland and Assembly Row in Somerville, Massachusetts. These unique and vibrant environments that combine shopping, dining, living and working provide a destination experience valued by their respective communities. Federal Realty's 104 properties include approximately 3,000 tenants, in 24 million square feet, and over 2,600 residential units. Federal Realty has increased its quarterly dividends to its shareholders for 51 consecutive years, the longest record in the REIT industry. Federal Realty is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT.

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