Urban Edge Properties (NYSE: UE) and Brixmor Property Group (NYSE:BRX) are both mid-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.

Institutional & Insider Ownership

87.2% of Urban Edge Properties shares are owned by institutional investors. 4.7% of Urban Edge Properties shares are owned by company insiders. Comparatively, 0.3% of Brixmor Property Group shares are owned 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.

Analyst Recommendations

This is a summary of current ratings for Urban Edge Properties and Brixmor Property Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Urban Edge Properties 1 0 0 0 1.00
Brixmor Property Group 0 5 6 0 2.55

Urban Edge Properties currently has a consensus target price of $25.00, indicating a potential upside of 1.83%. Brixmor Property Group has a consensus target price of $23.50, indicating a potential upside of 26.14%. Given Brixmor Property Group’s stronger consensus rating and higher possible upside, analysts plainly believe Brixmor Property Group is more favorable than Urban Edge Properties.

Risk & Volatility

Urban Edge Properties has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, Brixmor Property Group has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.

Profitability

This table compares Urban Edge Properties and Brixmor Property Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Urban Edge Properties 27.04% 16.72% 4.87%
Brixmor Property Group 23.06% 10.22% 3.19%

Valuation & Earnings

This table compares Urban Edge Properties and Brixmor Property Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Urban Edge Properties $379.02 million 6.97 $230.14 million $1.01 24.31
Brixmor Property Group $1.29 billion 4.40 $840.64 million $0.98 19.01

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

Dividends

Urban Edge Properties pays an annual dividend of $0.88 per share and has a dividend yield of 3.6%. Brixmor Property Group pays an annual dividend of $1.04 per share and has a dividend yield of 5.6%. Urban Edge Properties pays out 87.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brixmor Property Group pays out 106.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Urban Edge Properties beats Brixmor Property Group on 10 of the 16 factors compared between the two stocks.

Urban Edge Properties Company Profile

Urban Edge Properties is a real estate investment trust. The Company is focused on managing, developing, redeveloping and acquiring retail real estate in urban communities, in the New York metropolitan region. Urban Edge Properties LP (UELP or the Operating Partnership) serves as its partnership subsidiary and owns, through affiliates, all of its real estate properties and other assets. As of December 31, 2016, its portfolio consisted of 79 shopping centers, three malls and a warehouse park adjacent to one of its centers totaling 14.8 million square feet. As of December 31, 2016, it leased 19 properties under ground and/or building leases. As of December 31, 2016, it had approximately 1,200 leases. Its shopping centers and malls are located at California, Connecticut, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, South Carolina, Virginia and Puerto Rico. Its shopping centers and malls include Signal Hill, Vallejo, Walnut Creek, Newington and others.

Brixmor Property Group Company Profile

Brixmor Property Group Inc. is an internally managed real estate investment trust. The Company conducts its operations primarily through Brixmor Operating Partnership LP and subsidiaries (collectively, the Operating Partnership). As of December 31, 2016, it owned interests in 512 shopping centers (the Portfolio) with approximately 86 million square feet of gross leasable area (GLA), including 511 shopping centers and one shopping center held through an unconsolidated joint venture. With an average shopping center size of 167,982 square feet as of December 31, 2016, the Company’s portfolio consisted predominantly of community and neighborhood shopping centers. As of December 31, 2016, the Company’s properties were located in various states of the United States, such as Texas, Florida, California, New York, Illinois, Georgia, New Jersey, Ohio, North Carolina, Michigan, Connecticut, Tennessee, Kentucky, Colorado, Arizona, Delaware, West Virginia, Vermont, Maine, Oklahoma and New Mexico.

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