Getty Realty (NYSE:GTY – Get Free Report) and Farmland Partners (NYSE:FPI – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, earnings, valuation, institutional ownership, risk, profitability and analyst recommendations.
Profitability
This table compares Getty Realty and Farmland Partners’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Getty Realty | 34.76% | 7.60% | 3.72% |
| Farmland Partners | 130.10% | 14.15% | 8.41% |
Dividends
Getty Realty pays an annual dividend of $1.94 per share and has a dividend yield of 6.8%. Farmland Partners pays an annual dividend of $0.24 per share and has a dividend yield of 2.4%. Getty Realty pays out 151.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Farmland Partners pays out 20.0% of its earnings in the form of a dividend. Getty Realty has increased its dividend for 1 consecutive years. Getty Realty is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Getty Realty | 0 | 3 | 3 | 0 | 2.50 |
| Farmland Partners | 1 | 0 | 0 | 0 | 1.00 |
Getty Realty presently has a consensus price target of $31.80, suggesting a potential upside of 11.70%. Given Getty Realty’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Getty Realty is more favorable than Farmland Partners.
Insider and Institutional Ownership
85.1% of Getty Realty shares are held by institutional investors. Comparatively, 58.0% of Farmland Partners shares are held by institutional investors. 8.8% of Getty Realty shares are held by company insiders. Comparatively, 8.3% of Farmland Partners shares are held by company 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.
Risk and Volatility
Getty Realty has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Farmland Partners has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.
Valuation and Earnings
This table compares Getty Realty and Farmland Partners”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Getty Realty | $214.19 million | 7.68 | $71.06 million | $1.28 | 22.24 |
| Farmland Partners | $52.94 million | 8.01 | $59.91 million | $1.20 | 8.20 |
Getty Realty has higher revenue and earnings than Farmland Partners. Farmland Partners is trading at a lower price-to-earnings ratio than Getty Realty, indicating that it is currently the more affordable of the two stocks.
Summary
Getty Realty beats Farmland Partners on 11 of the 17 factors compared between the two stocks.
About Getty Realty
Getty Realty Corp. is a publicly traded, net lease REIT specializing in the acquisition, financing and development of convenience, automotive and other single tenant retail real estate. As of December 31, 2023, the Company’s portfolio included 1,093 freestanding properties located in 40 states across the United States and Washington, D.C.
About Farmland Partners
Farmland Partners Inc. is an internally managed real estate company that owns and seeks to acquire high-quality North American farmland and makes loans to farmers secured by farm real estate. As of December 31, 2023, the Company owns and/or manages approximately 171,100 acres in 16 states, including Arkansas, California, Colorado, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Nebraska, North Carolina, Oklahoma, South Carolina and Texas. In addition, the Company owns land and buildings for four agriculture equipment dealerships in Ohio leased to Ag Pro under the John Deere brand. The Company has approximately 26 crop types and over 100 tenants. The Company elected to be taxed as a real estate investment trust, or REIT, for U.S. federal income tax purposes, commencing with the taxable year ended December 31, 2014.
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