Urban Edge Properties (NYSE:UE – Get Free Report) and Phillips Edison & Company, Inc. (NASDAQ:PECO – Get Free Report) are both mid-cap real estate companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, risk, institutional ownership, earnings, dividends and analyst recommendations.
Valuation & Earnings
This table compares Urban Edge Properties and Phillips Edison & Company, Inc.”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Urban Edge Properties | $471.93 million | 5.68 | $93.54 million | $0.83 | 25.58 |
| Phillips Edison & Company, Inc. | $726.59 million | 7.37 | $111.30 million | $1.44 | 28.89 |
Phillips Edison & Company, Inc. has higher revenue and earnings than Urban Edge Properties. Urban Edge Properties is trading at a lower price-to-earnings ratio than Phillips Edison & Company, Inc., indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Urban Edge Properties and Phillips Edison & Company, Inc.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Urban Edge Properties | 21.12% | 7.53% | 3.09% |
| Phillips Edison & Company, Inc. | 23.87% | 6.90% | 3.36% |
Dividends
Urban Edge Properties pays an annual dividend of $0.84 per share and has a dividend yield of 4.0%. Phillips Edison & Company, Inc. pays an annual dividend of $1.38 per share and has a dividend yield of 3.3%. Urban Edge Properties pays out 101.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Phillips Edison & Company, Inc. pays out 95.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Urban Edge Properties has raised its dividend for 2 consecutive years and Phillips Edison & Company, Inc. has raised its dividend for 1 consecutive years. Urban Edge Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
94.9% of Urban Edge Properties shares are owned by institutional investors. Comparatively, 80.7% of Phillips Edison & Company, Inc. shares are owned by institutional investors. 2.7% of Urban Edge Properties shares are owned by company insiders. Comparatively, 8.1% of Phillips Edison & Company, Inc. shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Volatility and Risk
Urban Edge Properties has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Phillips Edison & Company, Inc. has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and target prices for Urban Edge Properties and Phillips Edison & Company, Inc., as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Urban Edge Properties | 0 | 2 | 2 | 0 | 2.50 |
| Phillips Edison & Company, Inc. | 0 | 7 | 3 | 0 | 2.30 |
Urban Edge Properties presently has a consensus target price of $22.67, suggesting a potential upside of 6.77%. Phillips Edison & Company, Inc. has a consensus target price of $43.20, suggesting a potential upside of 3.86%. Given Urban Edge Properties’ stronger consensus rating and higher probable upside, equities analysts clearly believe Urban Edge Properties is more favorable than Phillips Edison & Company, Inc..
Summary
Phillips Edison & Company, Inc. beats Urban Edge Properties on 10 of the 17 factors compared between the two stocks.
About Urban Edge Properties
Urban Edge Properties is a NYSE listed real estate investment trust focused on owning, managing, acquiring, developing, and redeveloping retail real estate in urban communities, primarily in the Washington, D.C. to Boston corridor. Urban Edge owns 76 properties totaling 17.1 million square feet of gross leasable area.
About Phillips Edison & Company, Inc.
Phillips Edison & Co., Inc. is a real estate investment trust, which engages in the ownership and operation of shopping centers. It also offers an investment management business providing property management and advisory services. Its portfolio consists of well-occupied, grocery-anchored neighborhood and community shopping centers having a mix of national, regional, and local retailers offering necessity-based goods and services. The company was founded by Jeffrey S. Edison and Michael C. Phillips in 1991 and is headquartered in Cincinnati, OH.
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