Critical Review: Elme Communities (NYSE:ELME) versus Brixmor Property Group (NYSE:BRX)

Brixmor Property Group (NYSE:BRX) and Elme Communities (NYSE:ELME) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares Brixmor Property Group and Elme Communities”s 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	$1.27 billion	6.14	$305.09 million	$1.08	23.97
Elme Communities	$239.52 million	5.27	-$52.98 million	($0.15)	-95.67

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

Dividends

Brixmor Property Group pays an annual dividend of $1.15 per share and has a dividend yield of 4.4%. Elme Communities pays an annual dividend of $0.72 per share and has a dividend yield of 5.0%. Brixmor Property Group pays out 106.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Elme Communities pays out -480.0% of its earnings in the form of a dividend. Elme Communities is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

98.4% of Brixmor Property Group shares are owned by institutional investors. Comparatively, 87.9% of Elme Communities shares are owned by institutional investors. 0.8% of Brixmor Property Group shares are owned by insiders. Comparatively, 1.2% of Elme Communities shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Brixmor Property Group and Elme Communities’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brixmor Property Group	25.81%	11.48%	3.81%
Elme Communities	-5.51%	-1.17%	-0.70%

Analyst Recommendations

This is a summary of current ratings and price targets for Brixmor Property Group and Elme Communities, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brixmor Property Group	0	4	9	0	2.69
Elme Communities	0	4	0	0	2.00

Brixmor Property Group presently has a consensus price target of $30.19, indicating a potential upside of 16.62%. Elme Communities has a consensus price target of $17.00, indicating a potential upside of 18.47%. Given Elme Communities’ higher possible upside, analysts clearly believe Elme Communities is more favorable than Brixmor Property Group.

Risk & Volatility

Brixmor Property Group has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500. Comparatively, Elme Communities has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.

Summary

Brixmor Property Group beats Elme Communities on 12 of the 16 factors compared between the two stocks.

About Brixmor Property Group

Brixmor (NYSE: BRX) is a real estate investment trust (REIT) that owns and operates a high-quality, national portfolio of open-air shopping centers. Its 362 retail centers comprise approximately 64 million square feet of prime retail space in established trade areas. The Company strives to own and operate shopping centers that reflect Brixmor's vision to be the center of the communities we serve and are home to a diverse mix of thriving national, regional and local retailers. Brixmor is a proud real estate partner to over 5,000 retailers including The TJX Companies, The Kroger Co., Publix Super Markets and Ross Stores.

About Elme Communities

Elme Communities is committed to elevating what home can be for middle-income renters by providing a higher level of quality, service, and experience. The Company is a multifamily real estate investment trust that owns and operates approximately 9,400 apartment homes in the Washington, DC metro and the Atlanta metro regions, and owns approximately 300,000 square feet of commercial space. Focused on providing quality, affordable homes to a deep, solid, and underserved base of mid-market demand, Elme Communities is building long-term value for shareholders.