Head to Head Survey: Getty Realty (GTY) and Armada Hoffler Properties (AHH)

Getty Realty (NYSE: GTY) and Armada Hoffler Properties (NYSE:AHH) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, valuation and earnings.

Earnings & Valuation

This table compares Getty Realty and Armada Hoffler Properties’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Getty Realty $120.15 million 8.12 $47.18 million $1.66 14.77
Armada Hoffler Properties $302.77 million 2.03 $21.04 million $0.99 13.72

Getty Realty has higher earnings, but lower revenue than Armada Hoffler Properties. Armada Hoffler Properties is trading at a lower price-to-earnings ratio than Getty Realty, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

65.3% of Getty Realty shares are owned by institutional investors. Comparatively, 78.0% of Armada Hoffler Properties shares are owned by institutional investors. 19.6% of Getty Realty shares are owned by company insiders. Comparatively, 14.4% of Armada Hoffler Properties shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Getty Realty and Armada Hoffler Properties, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Getty Realty 0 0 2 0 3.00
Armada Hoffler Properties 0 3 4 0 2.57

Getty Realty presently has a consensus price target of $31.00, indicating a potential upside of 26.43%. Armada Hoffler Properties has a consensus price target of $14.90, indicating a potential upside of 9.72%. Given Getty Realty’s stronger consensus rating and higher possible upside, analysts clearly believe Getty Realty is more favorable than Armada Hoffler Properties.

Profitability

This table compares Getty Realty and Armada Hoffler Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Getty Realty 38.13% 9.07% 4.72%
Armada Hoffler Properties 8.25% 5.12% 2.08%

Dividends

Getty Realty pays an annual dividend of $1.28 per share and has a dividend yield of 5.2%. Armada Hoffler Properties pays an annual dividend of $0.80 per share and has a dividend yield of 5.9%. Getty Realty pays out 77.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Armada Hoffler Properties pays out 80.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Getty Realty has raised its dividend for 5 consecutive years and Armada Hoffler Properties has raised its dividend for 4 consecutive years.

Risk and Volatility

Getty Realty has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, Armada Hoffler Properties has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.

Summary

Getty Realty beats Armada Hoffler Properties on 11 of the 17 factors compared between the two stocks.

Getty Realty Company Profile

Getty Realty Corp. is the leading publicly-traded real estate investment trust in the United States specializing in the ownership, leasing and financing of convenience store and gasoline station properties. As of December 31, 2017, the Company owned 828 properties and leased 79 properties from-third party landlords in 28 states across the United States and Washington, D.C.

Armada Hoffler Properties Company Profile

Armada Hoffler Properties, Inc. (NYSE:AHH) is a vertically-integrated, self-managed real estate investment trust ("REIT") with nearly four decades of experience developing, building, acquiring and managing high-quality, institutional-grade office, retail and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. The Company also provides general construction and development services to third-party clients, in addition to developing and building properties to be placed in its stabilized portfolio. The Company has elected to be taxed as a REIT for U.S. federal income tax purposes.

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