Critical Contrast: Getty Realty (NYSE:GTY) vs. COPT Defense Properties (NYSE:CDP)

Getty Realty (NYSE:GTY) and COPT Defense Properties (NYSE:CDP) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Earnings and Valuation

This table compares Getty Realty and COPT Defense Properties”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Getty Realty	$221.73 million	9.19	$79.19 million	$1.52	22.16
COPT Defense Properties	$763.92 million	4.72	$152.32 million	$1.38	23.05

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

Profitability

This table compares Getty Realty and COPT Defense Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Getty Realty	40.06%	8.76%	4.32%
COPT Defense Properties	20.10%	10.02%	3.51%

Institutional & Insider Ownership

85.1% of Getty Realty shares are held by institutional investors. 7.5% of Getty Realty shares are held by insiders. Comparatively, 1.7% of COPT Defense Properties shares are held 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.

Volatility & Risk

Getty Realty has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, COPT Defense Properties has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Getty Realty and COPT Defense Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Getty Realty	0	3	3	0	2.50
COPT Defense Properties	0	3	5	0	2.63

Getty Realty currently has a consensus target price of $33.60, suggesting a potential downside of 0.26%. COPT Defense Properties has a consensus target price of $34.50, suggesting a potential upside of 8.44%. Given COPT Defense Properties’ stronger consensus rating and higher probable upside, analysts plainly believe COPT Defense Properties is more favorable than Getty Realty.

Dividends

Getty Realty pays an annual dividend of $1.94 per share and has a dividend yield of 5.8%. COPT Defense Properties pays an annual dividend of $1.28 per share and has a dividend yield of 4.0%. Getty Realty pays out 127.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. COPT Defense Properties pays out 92.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Getty Realty has increased its dividend for 1 consecutive years. Getty Realty is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

COPT Defense Properties beats Getty Realty on 9 of the 17 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 COPT Defense Properties

COPT Defense Properties is a real estate investment trust. It acquires, develops, manages, sells, and leases out office properties and data centers. The firm operates through the following segments: Defense/Information Technology Locations, Regional Office, Wholesale Data Center, and Other. The company was founded on January 22,1988 and is headquartered in Columbia, MD.