Getty Realty Corporation (GTY) vs. Kimco Realty Corporation (KIM) Critical Review

Getty Realty Corporation (NYSE: GTY) and Kimco Realty Corporation (NYSE:KIM) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Insider and Institutional Ownership

52.1% of Getty Realty Corporation shares are held by institutional investors. Comparatively, 89.1% of Kimco Realty Corporation shares are held by institutional investors. 22.3% of Getty Realty Corporation shares are held by company insiders. Comparatively, 2.9% of Kimco Realty Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Getty Realty Corporation pays an annual dividend of $1.12 per share and has a dividend yield of 3.9%. Kimco Realty Corporation pays an annual dividend of $1.08 per share and has a dividend yield of 5.7%. Getty Realty Corporation pays out 92.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kimco Realty Corporation pays out 220.4% 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 Corporation has raised its dividend for 4 consecutive years and Kimco Realty Corporation has raised its dividend for 7 consecutive years. Kimco Realty Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Getty Realty Corporation and Kimco Realty Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Getty Realty Corporation 36.50% 10.28% 5.06%
Kimco Realty Corporation 21.77% 4.68% 2.23%

Risk & Volatility

Getty Realty Corporation has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500. Comparatively, Kimco Realty Corporation has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500.

Valuation & Earnings

This table compares Getty Realty Corporation and Kimco Realty Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Getty Realty Corporation $114.91 million 9.88 $78.24 million $1.21 23.81
Kimco Realty Corporation $1.17 billion 6.95 $764.78 million $0.49 39.00

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

Analyst Ratings

This is a summary of current recommendations for Getty Realty Corporation and Kimco Realty Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Getty Realty Corporation 1 0 2 0 2.33
Kimco Realty Corporation 0 6 7 0 2.54

Getty Realty Corporation presently has a consensus target price of $27.33, suggesting a potential downside of 5.13%. Kimco Realty Corporation has a consensus target price of $24.97, suggesting a potential upside of 30.66%. Given Kimco Realty Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Kimco Realty Corporation is more favorable than Getty Realty Corporation.

Summary

Kimco Realty Corporation beats Getty Realty Corporation on 10 of the 17 factors compared between the two stocks.

Getty Realty Corporation Company Profile

Getty Realty Corp. is a real estate investment trust (REIT). The Company specializes in the ownership, leasing and financing of convenience store and gasoline station properties. As of June 30, 2017, the Company’s 825 properties were located in 26 states across the United States and Washington, District of Columbia. Its properties are operated under a range of brands, including 76, Aloha, BP, Citgo, Conoco, Exxon, Getty, Mobil, RaceTrac, Shell and Valero. The Company owns the Getty name in connection with its real estate and the petroleum marketing business in the United States. As of June 30, 2017, the Company had owned 738 properties and leased 87 properties from third-party landlords. Its typical property is used as a convenience store and gasoline station. Its properties are concentrated in the Northeast and Mid-Atlantic regions.

Kimco Realty Corporation Company Profile

Kimco Realty Corporation is a self-administered real estate investment trust. The Company is engaged in the ownership, management, development and operation of open-air shopping centers, which are anchored generally by discount department stores, grocery stores or drugstores. As of June 30, 2017, the Company had interests in 510 shopping center properties, including 84 million square feet of gross leasable area (GLA), located in 32 states, Puerto Rico and Canada. As of March 31, 2017, the Company had 380 other property interests, primarily through the Company’s preferred equity investments and other real estate investments, totaling 5.8 million square feet of GLA.

Receive News & Ratings for Getty Realty Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Getty Realty Corporation and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply