Grit Real Estate Income Group (LON:GR1T) and Town Centre Securities (LON:TOWN) are both small-cap real estate companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.
Valuation & Earnings
This table compares Grit Real Estate Income Group and Town Centre Securities' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Grit Real Estate Income Group | £43.70 million | 3.43 | N/A | GBX (24.30) | -2.02 |
Town Centre Securities | £27.99 million | 2.32 | N/A | GBX (45.40) | -2.69 |
Town Centre Securities is trading at a lower price-to-earnings ratio than Grit Real Estate Income Group, indicating that it is currently the more affordable of the two stocks.
Dividends
Grit Real Estate Income Group pays an annual dividend of GBX 0.12 per share and has a dividend yield of 0.2%. Town Centre Securities pays an annual dividend of GBX 0.12 per share and has a dividend yield of 0.1%. Grit Real Estate Income Group pays out -0.5% of its earnings in the form of a dividend. Town Centre Securities pays out -0.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Grit Real Estate Income Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Grit Real Estate Income Group and Town Centre Securities' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Grit Real Estate Income Group | N/A | N/A | N/A |
Town Centre Securities | N/A | N/A | N/A |
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Grit Real Estate Income Group and Town Centre Securities, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Grit Real Estate Income Group | 0 | 0 | 0 | 0 | N/A |
Town Centre Securities | 0 | 1 | 1 | 0 | 2.50 |
Town Centre Securities has a consensus target price of GBX 190, indicating a potential upside of 55.48%. Given Town Centre Securities' higher possible upside, analysts plainly believe Town Centre Securities is more favorable than Grit Real Estate Income Group.
Summary
Grit Real Estate Income Group beats Town Centre Securities on 6 of the 8 factors compared between the two stocks.