Financial Review: LuxUrban Hotels (NASDAQ:LUXH) vs. Getty Realty (NYSE:GTY)

Getty Realty (NYSE:GTY) and LuxUrban Hotels (NASDAQ:LUXH) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Volatility and Risk

Getty Realty has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, LuxUrban Hotels has a beta of -1.43, indicating that its share price is 243% less volatile than the S&P 500.

Earnings & Valuation

This table compares Getty Realty and LuxUrban Hotels”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Getty Realty	$197.04 million	8.88	$60.15 million	$1.17	27.70
LuxUrban Hotels	$119.68 million	0.03	-$78.52 million	($2.38)	-0.04

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

Insider and Institutional Ownership

85.1% of Getty Realty shares are held by institutional investors. Comparatively, 28.5% of LuxUrban Hotels shares are held by institutional investors. 9.2% of Getty Realty shares are held by insiders. Comparatively, 51.5% of LuxUrban Hotels shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for Getty Realty and LuxUrban Hotels, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Getty Realty	0	2	1	0	2.33
LuxUrban Hotels	0	2	1	0	2.33

Getty Realty presently has a consensus price target of $32.00, indicating a potential downside of 0.78%. LuxUrban Hotels has a consensus price target of $4.00, indicating a potential upside of 4,354.34%. Given LuxUrban Hotels’ higher probable upside, analysts plainly believe LuxUrban Hotels is more favorable than Getty Realty.

Profitability

This table compares Getty Realty and LuxUrban Hotels’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Getty Realty	33.49%	6.98%	3.59%
LuxUrban Hotels	-77.31%	-11.23%	-2.14%

Summary

Getty Realty beats LuxUrban Hotels on 10 of the 12 factors compared between the two stocks.

About Getty Realty

Getty Realty Corp. is a publicly traded, net lease REIT specializing in the acquisition, financing and development of convenience, automotive and other single tenant retail real estate. As of December 31, 2023, the Company’s portfolio included 1,093 freestanding properties located in 40 states across the United States and Washington, D.C.

About LuxUrban Hotels

LuxUrban Hotels Inc. utilizes an asset light business model to lease entire hotels on a long-term basis and rent out hotel rooms in the properties it leases. It manages a portfolio of hotel rooms in New York, Washington D.C., Miami Beach, New Orleans, and Los Angeles. The company was formerly known as CorpHousing Group Inc. and changed its name to LuxUrban Hotels Inc. in November 2022. The company was incorporated in 2017 and is headquartered in Miami, Florida.