Brixmor Property Group (NYSE:BRX) and Alexandria Real Estate Equities (NYSE:ARE) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, dividends, institutional ownership, profitability and analyst recommendations.
Earnings & Valuation
This table compares Brixmor Property Group and Alexandria Real Estate Equities' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Brixmor Property Group | $1.17 billion | 4.92 | $274.77 million | $1.91 | 10.14 |
Alexandria Real Estate Equities | $1.53 billion | 14.38 | $363.17 million | $6.96 | 23.14 |
Alexandria Real Estate Equities has higher revenue and earnings than Brixmor Property Group. Brixmor Property Group is trading at a lower price-to-earnings ratio than Alexandria Real Estate Equities, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
98.4% of Brixmor Property Group shares are owned by institutional investors. Comparatively, 87.6% of Alexandria Real Estate Equities shares are owned by institutional investors. 0.4% of Brixmor Property Group shares are owned by insiders. Comparatively, 1.1% of Alexandria Real Estate Equities shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Brixmor Property Group and Alexandria Real Estate Equities, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Brixmor Property Group | 1 | 8 | 5 | 0 | 2.29 |
Alexandria Real Estate Equities | 0 | 1 | 6 | 0 | 2.86 |
Brixmor Property Group currently has a consensus target price of $15.1667, suggesting a potential downside of 21.66%. Alexandria Real Estate Equities has a consensus target price of $160.8750, suggesting a potential downside of 0.07%. Given Alexandria Real Estate Equities' stronger consensus rating and higher probable upside, analysts clearly believe Alexandria Real Estate Equities is more favorable than Brixmor Property Group.
Dividends
Brixmor Property Group pays an annual dividend of $0.86 per share and has a dividend yield of 4.4%. Alexandria Real Estate Equities pays an annual dividend of $4.36 per share and has a dividend yield of 2.7%. Brixmor Property Group pays out 45.0% of its earnings in the form of a dividend. Alexandria Real Estate Equities pays out 62.6% 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. Brixmor Property Group has increased its dividend for 1 consecutive years and Alexandria Real Estate Equities has increased its dividend for 10 consecutive years. Brixmor Property Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Brixmor Property Group and Alexandria Real Estate Equities' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Brixmor Property Group | 14.75% | 6.07% | 1.94% |
Alexandria Real Estate Equities | 29.07% | 4.79% | 2.66% |
Risk & Volatility
Brixmor Property Group has a beta of 1.63, indicating that its stock price is 63% more volatile than the S&P 500. Comparatively, Alexandria Real Estate Equities has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.
Summary
Alexandria Real Estate Equities beats Brixmor Property Group on 12 of the 17 factors compared between the two stocks.