Comparing Urban Edge Properties (NYSE:UE) & Phillips Edison & Company, Inc. (NASDAQ:PECO)

Urban Edge Properties (NYSE:UE) and Phillips Edison & Company, Inc. (NASDAQ:PECO) are both mid-cap real estate companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares Urban Edge Properties and Phillips Edison & Company, Inc.”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Urban Edge Properties	$471.93 million	5.57	$93.54 million	$0.83	25.08
Phillips Edison & Company, Inc.	$761.31 million	6.98	$111.30 million	$1.44	28.61

Phillips Edison & Company, Inc. has higher revenue and earnings than Urban Edge Properties. Urban Edge Properties is trading at a lower price-to-earnings ratio than Phillips Edison & Company, Inc., indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Urban Edge Properties has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Phillips Edison & Company, Inc. has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Urban Edge Properties and Phillips Edison & Company, Inc., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Urban Edge Properties	0	2	2	0	2.50
Phillips Edison & Company, Inc.	0	7	3	0	2.30

Urban Edge Properties presently has a consensus price target of $23.00, indicating a potential upside of 10.47%. Phillips Edison & Company, Inc. has a consensus price target of $43.20, indicating a potential upside of 4.84%. Given Urban Edge Properties’ stronger consensus rating and higher possible upside, research analysts plainly believe Urban Edge Properties is more favorable than Phillips Edison & Company, Inc..

Institutional and Insider Ownership

94.9% of Urban Edge Properties shares are held by institutional investors. Comparatively, 80.7% of Phillips Edison & Company, Inc. shares are held by institutional investors. 2.7% of Urban Edge Properties shares are held by company insiders. Comparatively, 8.1% of Phillips Edison & Company, Inc. shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Urban Edge Properties pays an annual dividend of $0.84 per share and has a dividend yield of 4.0%. Phillips Edison & Company, Inc. pays an annual dividend of $1.38 per share and has a dividend yield of 3.3%. Urban Edge Properties pays out 101.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Phillips Edison & Company, Inc. pays out 95.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Urban Edge Properties has increased its dividend for 2 consecutive years and Phillips Edison & Company, Inc. has increased its dividend for 1 consecutive years. Urban Edge Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Urban Edge Properties and Phillips Edison & Company, Inc.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Urban Edge Properties	21.12%	7.53%	3.09%
Phillips Edison & Company, Inc.	23.87%	6.90%	3.36%

Summary

Phillips Edison & Company, Inc. beats Urban Edge Properties on 10 of the 17 factors compared between the two stocks.

About Urban Edge Properties

Urban Edge Properties is a real estate investment trust that owns, manages, leases and redevelops retail properties. Its portfolio includes shopping centers and other retail destinations, with many properties anchored by grocery stores and serving densely populated communities. The company focuses on the Northeast and Mid-Atlantic, including the New York metropolitan area and markets around Washington, D.C. Its work includes leasing space to retailers and investing in property improvements and redevelopment.

About Phillips Edison & Company, Inc.

Phillips Edison & Company, Inc. is a real estate investment trust (REIT) that owns and operates grocery-anchored shopping centers. Its properties are designed to serve local communities, with grocery stores alongside retailers and service providers that meet everyday needs. The company’s activities include leasing and managing its centers, as well as acquiring and improving properties. Its portfolio spans markets across the United States. Founded in 1991, Phillips Edison is headquartered in Cincinnati, Ohio.