Getty Realty (NYSE:GTY) and Simon Property Group (NYSE:SPG) Financial Survey

Simon Property Group (NYSE:SPG) and Getty Realty (NYSE:GTY) are both real estate companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Earnings & Valuation

This table compares Simon Property Group and Getty Realty”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Simon Property Group	$7.15 billion	10.62	$4.63 billion	$13.86	16.93
Getty Realty	$240.43 million	7.93	$79.19 million	$1.64	17.31

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

Analyst Recommendations

This is a summary of current recommendations for Simon Property Group and Getty Realty, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simon Property Group	0	13	9	0	2.41
Getty Realty	0	4	3	1	2.62

Simon Property Group presently has a consensus price target of $228.67, indicating a potential downside of 2.57%. Getty Realty has a consensus price target of $36.57, indicating a potential upside of 28.82%. Given Getty Realty’s stronger consensus rating and higher probable upside, analysts clearly believe Getty Realty is more favorable than Simon Property Group.

Dividends

Simon Property Group pays an annual dividend of $9.20 per share and has a dividend yield of 3.9%. Getty Realty pays an annual dividend of $2.00 per share and has a dividend yield of 7.0%. Simon Property Group pays out 66.4% of its earnings in the form of a dividend. Getty Realty pays out 122.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Simon Property Group has raised its dividend for 4 consecutive years and Getty Realty has raised its dividend for 1 consecutive years.

Profitability

This table compares Simon Property Group and Getty Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Simon Property Group	63.08%	78.14%	11.35%
Getty Realty	42.37%	8.93%	4.42%

Volatility & Risk

Simon Property Group has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, Getty Realty has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500.

Insider and Institutional Ownership

93.0% of Simon Property Group shares are held by institutional investors. Comparatively, 85.1% of Getty Realty shares are held by institutional investors. 8.7% of Simon Property Group shares are held by insiders. Comparatively, 7.5% of Getty Realty shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Simon Property Group beats Getty Realty on 13 of the 18 factors compared between the two stocks.

About Simon Property Group

Simon Property Group is a real estate investment trust that owns, develops and manages shopping, dining and entertainment destinations. Its portfolio includes regional malls, premium outlet centers and mixed-use properties, which combine retail with other uses such as restaurants and entertainment. The company’s properties are located primarily in the United States, with additional investments and operations in international markets, including Europe and Asia. Its business activities include leasing space to retailers and other tenants, operating properties and investing in redevelopment and expansion projects.

About Getty Realty

Getty Realty Corp. is a real estate investment trust that owns and leases properties used for convenience and automotive retail businesses. Its portfolio includes gas stations, convenience stores, car washes, and automotive service centers. The company generally leases its properties to operators under long-term net leases. Tenants run their businesses and are typically responsible for property-related expenses, while Getty focuses on owning and managing the real estate. Getty Realty’s properties are located across the United States.