GGP (NYSE: GGP) and Urban Edge Properties (NYSE:UE) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Insider and Institutional Ownership

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95.3% of GGP shares are owned by institutional investors. Comparatively, 89.0% of Urban Edge Properties shares are owned by institutional investors. 35.6% of GGP shares are owned by insiders. Comparatively, 4.7% of Urban Edge Properties shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

GGP has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Urban Edge Properties has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500.

Profitability

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
GGP 28.24% 7.87% 2.88%
Urban Edge Properties 16.48% 7.70% 2.65%

Earnings & Valuation

This table compares GGP and Urban Edge Properties’ gross 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 $0.69 31.88
Urban Edge Properties $407.04 million 6.17 $90.81 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.

Analyst Ratings

This is a breakdown of recent ratings and price targets for GGP and Urban Edge Properties, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GGP 2 3 6 0 2.36
Urban Edge Properties 1 1 0 0 1.50

GGP currently has a consensus target price of $24.77, indicating a potential upside of 12.60%. Urban Edge Properties has a consensus target price of $25.00, indicating a potential upside of 13.38%. Given Urban Edge Properties’ higher probable upside, analysts plainly believe Urban Edge Properties is more favorable than GGP.

Dividends

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 127.5% 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.

Summary

GGP beats Urban Edge Properties on 14 of the 17 factors compared between the two stocks.

About GGP

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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