Service Properties Trust (NASDAQ:SVC – Get Rating) and Brixmor Property Group (NYSE:BRX – Get Rating) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.
Insider & Institutional Ownership
77.6% of Service Properties Trust shares are held by institutional investors. Comparatively, 98.4% of Brixmor Property Group shares are held by institutional investors. 1.3% of Service Properties Trust shares are held by company insiders. Comparatively, 0.6% of Brixmor Property Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Service Properties Trust and Brixmor Property Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Service Properties Trust||$1.50 billion||0.90||-$544.60 million||($3.31)||-2.45|
|Brixmor Property Group||$1.15 billion||6.56||$270.19 million||$0.90||28.20|
Brixmor Property Group has lower revenue, but higher earnings than Service Properties Trust. Service Properties Trust 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.
Service Properties Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.5%. Brixmor Property Group pays an annual dividend of $0.96 per share and has a dividend yield of 3.8%. Service Properties Trust pays out -1.2% of its earnings in the form of a dividend. Brixmor Property Group pays out 106.7% 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 has raised its dividend for 1 consecutive years. Brixmor Property Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Service Properties Trust and Brixmor Property Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Service Properties Trust||-36.41%||-30.99%||-5.82%|
|Brixmor Property Group||23.45%||10.02%||3.24%|
This is a summary of recent ratings for Service Properties Trust and Brixmor Property Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Service Properties Trust||1||1||1||0||2.00|
|Brixmor Property Group||0||6||6||0||2.50|
Service Properties Trust presently has a consensus price target of $13.00, indicating a potential upside of 60.10%. Brixmor Property Group has a consensus price target of $27.33, indicating a potential upside of 7.70%. Given Service Properties Trust’s higher probable upside, analysts plainly believe Service Properties Trust is more favorable than Brixmor Property Group.
Volatility & Risk
Service Properties Trust has a beta of 2.23, indicating that its share price is 123% more volatile than the S&P 500. Comparatively, Brixmor Property Group has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500.
Brixmor Property Group beats Service Properties Trust on 12 of the 17 factors compared between the two stocks.
Service Properties Trust Company Profile (Get Rating)
Service Properties Trust is a real estate investment trust, or REIT, which owns a diverse portfolio of hotels and net lease service and necessity-based retail properties across the United States and in Puerto Rico and Canada with 149 distinct brands across 23 industries. SVC’s properties are primarily operated under long-term management or lease agreements. SVC is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), or RMR Inc., an alternative asset management company that is headquartered in Newton, Massachusetts.
Brixmor Property Group Company Profile (Get Rating)
Brixmor (NYSE: BRX) is a real estate investment trust (REIT) that owns and operates a high-quality, national portfolio of open-air shopping centers. Its 395 retail centers comprise approximately 69 million square feet of prime retail space in established trade areas. The Company strives to own and operate shopping centers that reflect Brixmor’s vision “to be the center of the communities we serve” and are home to a diverse mix of thriving national, regional and local retailers. Brixmor is a proud real estate partner to approximately 5,000 retailers including The TJX Companies, The Kroger Co., Publix Super Markets, Wal-Mart, Ross Stores and L.A. Fitness.
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