Macerich (NYSE: MAC) and Brixmor Property Group (NYSE:BRX) are both mid-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Earnings and Valuation

This table compares Macerich and Brixmor Property Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Macerich $1.04 billion 8.85 $516.99 million $1.05 62.36
Brixmor Property Group $1.28 billion 4.34 $275.62 million $1.06 17.13

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

Volatility and Risk

Macerich has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Brixmor Property Group has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Macerich 14.92% 3.56% 1.55%
Brixmor Property Group 25.14% 11.08% 3.48%

Dividends

Macerich pays an annual dividend of $2.96 per share and has a dividend yield of 4.5%. Brixmor Property Group pays an annual dividend of $1.04 per share and has a dividend yield of 5.7%. Macerich pays out 281.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brixmor Property Group pays out 98.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brixmor Property Group has increased its dividend for 6 consecutive years. Brixmor Property Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Macerich and Brixmor Property Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Macerich 2 8 5 0 2.20
Brixmor Property Group 0 8 1 0 2.11

Macerich presently has a consensus target price of $66.40, suggesting a potential upside of 1.41%. Brixmor Property Group has a consensus target price of $21.25, suggesting a potential upside of 17.02%. Given Brixmor Property Group’s higher probable upside, analysts clearly believe Brixmor Property Group is more favorable than Macerich.

Insider and Institutional Ownership

97.8% of Macerich shares are owned by institutional investors. Comparatively, 98.6% of Brixmor Property Group shares are owned by institutional investors. 3.8% of Macerich shares are owned by company insiders. Comparatively, 0.3% of Brixmor Property Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Brixmor Property Group beats Macerich on 10 of the 17 factors compared between the two stocks.

About Macerich

The Macerich Company is a self-administered and self-managed real estate investment trust (REIT). The Company is involved in the acquisition, ownership, development, redevelopment, management and leasing of regional and community/power shopping centers located throughout the United States. The Company owns ownership interests in, The Macerich Partnership, L.P. (the Operating Partnership). As of December 31, 2016, the Company, through its operating partnership, had ownership interests in 50 regional shopping centers and seven community/power shopping centers. These 57 regional and community/power shopping centers consisted of approximately 56 million square feet of gross leasable area (GLA), as of December 31, 2016. The Company’s properties include Danbury Fair Mall, Desert Sky Mall, Fresno Fashion Fair, NorthPark Mall, Oaks, The, Towne Mall, Valley Mall, Arrowhead Towne Center, Deptford Mall and South Plains Mall.

About Brixmor Property Group

Brixmor Property Group Inc. is an internally managed real estate investment trust. The Company conducts its operations primarily through Brixmor Operating Partnership LP and subsidiaries (collectively, the Operating Partnership). As of December 31, 2016, it owned interests in 512 shopping centers (the Portfolio) with approximately 86 million square feet of gross leasable area (GLA), including 511 shopping centers and one shopping center held through an unconsolidated joint venture. With an average shopping center size of 167,982 square feet as of December 31, 2016, the Company’s portfolio consisted predominantly of community and neighborhood shopping centers. As of December 31, 2016, the Company’s properties were located in various states of the United States, such as Texas, Florida, California, New York, Illinois, Georgia, New Jersey, Ohio, North Carolina, Michigan, Connecticut, Tennessee, Kentucky, Colorado, Arizona, Delaware, West Virginia, Vermont, Maine, Oklahoma and New Mexico.

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