Analyzing Brixmor Property Group (NYSE:BRX) & Elme Communities (NYSE:ELME)

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

Dividends

Elme Communities pays an annual dividend of $0.72 per share and has a dividend yield of 4.8%. Brixmor Property Group pays an annual dividend of $1.15 per share and has a dividend yield of 4.2%. Elme Communities pays out -480.0% of its earnings in the form of a dividend. 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Elme Communities 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
Elme Communities	$239.52 million	5.55	-$52.98 million	($0.15)	-100.67
Brixmor Property Group	$1.27 billion	6.55	$305.09 million	$1.08	25.55

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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Elme Communities and Brixmor Property Group, as provided by MarketBeat.com.

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

Elme Communities presently has a consensus price target of $17.00, suggesting a potential upside of 12.58%. Brixmor Property Group has a consensus price target of $30.19, suggesting a potential upside of 9.43%. Given Elme Communities’ higher probable upside, equities analysts clearly believe Elme Communities is more favorable than Brixmor Property Group.

Profitability

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

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

Institutional and Insider Ownership

87.9% of Elme Communities shares are held by institutional investors. Comparatively, 98.4% of Brixmor Property Group shares are held by institutional investors. 1.2% of Elme Communities shares are held by insiders. Comparatively, 0.8% of Brixmor Property Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Elme Communities has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Brixmor Property Group has a beta of 1.59, suggesting that its stock price is 59% more 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 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.

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.