Head to Head Contrast: Retail Properties of America (RPAI) vs. Brixmor Property Group (BRX)

Retail Properties of America (NYSE: RPAI) and Brixmor Property Group (NYSE:BRX) are both mid-cap financials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitability.

Risk & Volatility

Retail Properties of America has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500. Comparatively, Brixmor Property Group has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500.

Valuation and Earnings

This table compares Retail Properties of America and Brixmor Property Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Retail Properties of America $583.14 million 5.08 $166.81 million $0.64 20.38
Brixmor Property Group $1.28 billion 4.28 $275.62 million $1.06 16.91

Brixmor Property Group has higher revenue and earnings than Retail Properties of America. Brixmor Property Group is trading at a lower price-to-earnings ratio than Retail Properties of America, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

79.1% of Retail Properties of America shares are held by institutional investors. Comparatively, 98.3% of Brixmor Property Group shares are held by institutional investors. 0.4% of Retail Properties of America shares are held by insiders. Comparatively, 0.3% of Brixmor Property Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Retail Properties of America and Brixmor Property Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Retail Properties of America 0 2 5 0 2.71
Brixmor Property Group 0 7 3 0 2.30

Retail Properties of America presently has a consensus price target of $16.07, suggesting a potential upside of 23.25%. Brixmor Property Group has a consensus price target of $21.38, suggesting a potential upside of 19.28%. Given Retail Properties of America’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Retail Properties of America is more favorable than Brixmor Property Group.

Dividends

Retail Properties of America pays an annual dividend of $0.66 per share and has a dividend yield of 5.1%. Brixmor Property Group pays an annual dividend of $1.10 per share and has a dividend yield of 6.1%. Retail Properties of America pays out 103.1% 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 pays out 103.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Retail Properties of America has raised its dividend for 2 consecutive years.

Profitability

This table compares Retail Properties of America and Brixmor Property Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Retail Properties of America 28.84% 7.61% 3.71%
Brixmor Property Group 25.14% 11.08% 3.48%

Summary

Retail Properties of America beats Brixmor Property Group on 10 of the 17 factors compared between the two stocks.

Retail Properties of America Company Profile

Retail Properties of America, Inc. is a real estate investment trust (REIT). The Company owns and operates shopping centers located in the United States. As of December 31, 2016, it owned 156 retail operating properties representing 25,832,000 square feet of gross leasable area (GLA). Its retail operating portfolio includes neighborhood and community centers, power centers, and lifestyle centers and multi-tenant retail-focused mixed-use properties, as well as single-user retail properties. As of December 31, 2016, it had identified 10 target markets, including Dallas, Washington, District of Columbia/Baltimore, New York, Atlanta, Seattle, Chicago, Houston, San Antonio, Phoenix and Austin. Its properties include 23rd Street Plaza, Azalea Square I, Boulevard Plaza, Brown’s Lane, Cranberry Square, Denton Crossing, Dorman Center I & II, Edgemont Town Center, Edwards Multiplex, Green’s Corner, Home Depot Plaza, Lake Mary Pointe, Lincoln Park, University Town Center and Winchester Commons.

Brixmor Property Group Company Profile

Brixmor Property Group Inc. is an internally managed real estate investment trust. The Company conducts its operations primarily through Brixmor Operating Partnership LP and subsidiaries (collectively, the Operating Partnership). As of December 31, 2016, it owned interests in 512 shopping centers (the Portfolio) with approximately 86 million square feet of gross leasable area (GLA), including 511 shopping centers and one shopping center held through an unconsolidated joint venture. With an average shopping center size of 167,982 square feet as of December 31, 2016, the Company’s portfolio consisted predominantly of community and neighborhood shopping centers. As of December 31, 2016, the Company’s properties were located in various states of the United States, such as Texas, Florida, California, New York, Illinois, Georgia, New Jersey, Ohio, North Carolina, Michigan, Connecticut, Tennessee, Kentucky, Colorado, Arizona, Delaware, West Virginia, Vermont, Maine, Oklahoma and New Mexico.

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