Brixmor Property Group (BRX) vs. DDR (DDR) Head-To-Head Contrast

Brixmor Property Group (NYSE: BRX) and DDR (NYSE:DDR) are both mid-cap financials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and target prices for Brixmor Property Group and DDR, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brixmor Property Group 0 7 2 0 2.22
DDR 1 9 6 0 2.31

Brixmor Property Group currently has a consensus price target of $21.38, suggesting a potential upside of 14.12%. DDR has a consensus price target of $11.21, suggesting a potential upside of 23.85%. Given DDR’s stronger consensus rating and higher possible upside, analysts plainly believe DDR is more favorable than Brixmor Property Group.

Insider & Institutional Ownership

98.3% of Brixmor Property Group shares are owned by institutional investors. Comparatively, 79.9% of DDR shares are owned by institutional investors. 0.3% of Brixmor Property Group shares are owned by company insiders. Comparatively, 16.1% of DDR shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Brixmor Property Group and DDR’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brixmor Property Group $1.28 billion 4.48 $275.62 million $1.06 17.67
DDR $969.51 million 3.44 $60.01 million ($0.46) -19.67

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

Dividends

Brixmor Property Group pays an annual dividend of $1.04 per share and has a dividend yield of 5.6%. DDR pays an annual dividend of $0.76 per share and has a dividend yield of 8.4%. Brixmor Property Group pays out 98.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DDR pays out -165.2% of its earnings in the form of a dividend. Brixmor Property Group has raised its dividend for 6 consecutive years. DDR is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Brixmor Property Group has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500. Comparatively, DDR has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Brixmor Property Group 25.14% 11.08% 3.48%
DDR 1.11% 3.48% 1.20%

Summary

Brixmor Property Group beats DDR on 10 of the 17 factors compared between the two stocks.

About Brixmor Property Group

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.

About DDR

DDR Corp. is a self-administered and self-managed real estate investment trust. It operates through two segments: shopping centers and loan investments. It is in the business of acquiring, owning, developing, redeveloping, expanding, leasing and managing shopping centers. As of December 31, 2016, it owned and managed approximately 106 million total square feet of gross leasable area (GLA). As of December 31, 2016, the portfolio properties included 319 shopping centers (including 152 centers owned through joint ventures). As of December 31, 2016, the portfolio properties also included over 650 acres of undeveloped land, including parcels located adjacent to certain of the shopping centers. As of December 31, 2016, the portfolio properties aggregated to 75.8 million square feet of Company-owned GLA located in 35 states, plus Puerto Rico. These centers are in the Southeast and Midwest, with significant concentrations in Florida, Georgia, Ohio and North Carolina, as well as Puerto Rico.

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