GGP (NYSE: GGP) and Urban Edge Properties (NYSE:UE) are both financials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.
Volatility & Risk
GGP has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Urban Edge Properties has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500.
GGP pays an annual dividend of $0.88 per share and has a dividend yield of 4.0%. Urban Edge Properties pays an annual dividend of $0.88 per share and has a dividend yield of 4.0%. GGP pays out 129.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Urban Edge Properties pays out 135.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. GGP has raised its dividend for 2 consecutive years and Urban Edge Properties has raised its dividend for 6 consecutive years. GGP is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a summary of current ratings and recommmendations for GGP and Urban Edge Properties, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Urban Edge Properties||1||1||0||0||1.50|
GGP currently has a consensus target price of $24.77, suggesting a potential upside of 12.60%. Urban Edge Properties has a consensus target price of $25.00, suggesting a potential upside of 13.38%. Given Urban Edge Properties’ higher possible upside, analysts clearly believe Urban Edge Properties is more favorable than GGP.
Earnings and Valuation
This table compares GGP and Urban Edge Properties’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|GGP||$2.33 billion||9.04||$657.33 million||$0.68||32.35|
|Urban Edge Properties||$407.04 million||6.17||$67.07 million||$0.65||33.92|
GGP has higher revenue and earnings than Urban Edge Properties. GGP is trading at a lower price-to-earnings ratio than Urban Edge Properties, indicating that it is currently the more affordable of the two stocks.
This table compares GGP and Urban Edge Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Urban Edge Properties||16.48%||7.70%||2.65%|
Insider & Institutional Ownership
93.3% of GGP shares are owned by institutional investors. Comparatively, 90.5% of Urban Edge Properties shares are owned by institutional investors. 35.6% of GGP shares are owned by company insiders. Comparatively, 4.7% of Urban Edge Properties shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
GGP beats Urban Edge Properties on 14 of the 17 factors compared between the two stocks.
GGP Inc. (GGP), formerly General Growth Properties, Inc., is a self-administered and self-managed real estate investment trust (REIT). The Company operates as a holding company, which is engaged in the operation, development and management of retail and other rental properties, primarily regional malls. As of December 31, 2016, the Company owned, either entirely or with joint venture partners, 127 retail properties located throughout the United States comprising approximately 125 million square feet of gross leasable area (GLA). As of December 31, 2016, the Company’s retail properties included 200 Lafayette, The Shoppes at Buckland Hills, Northridge Fashion Center, Brass Mill Center, Jordan Creek Town Center, Westroads Mall and Stonestown Galleria. The Company’s business is conducted through GGP Operating Partnership, LP (GGPOP), GGP Nimbus, LP (GGPN) and GGP Limited Partnership (GGPLP, and together with GGPN and GGPOP, the Operating Partnerships), subsidiaries of GGP.
About Urban Edge Properties
Urban Edge Properties is a real estate investment trust. The Company is focused on managing, developing, redeveloping and acquiring retail real estate in urban communities, in the New York metropolitan region. Urban Edge Properties LP (UELP or the Operating Partnership) serves as its partnership subsidiary and owns, through affiliates, all of its real estate properties and other assets. As of December 31, 2016, its portfolio consisted of 79 shopping centers, three malls and a warehouse park adjacent to one of its centers totaling 14.8 million square feet. As of December 31, 2016, it leased 19 properties under ground and/or building leases. As of December 31, 2016, it had approximately 1,200 leases. Its shopping centers and malls are located at California, Connecticut, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, South Carolina, Virginia and Puerto Rico. Its shopping centers and malls include Signal Hill, Vallejo, Walnut Creek, Newington and others.
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