Head to Head Analysis: Getty Realty (NYSE:GTY) versus Simon Property Group (NYSE:SPG)

Getty Realty (NYSE:GTY) and Simon Property Group (NYSE:SPG) are both real estate companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.

Profitability

This table compares Getty Realty and Simon Property Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Getty Realty	42.37%	8.93%	4.42%
Simon Property Group	66.56%	89.32%	12.03%

Insider and Institutional Ownership

85.1% of Getty Realty shares are held by institutional investors. Comparatively, 93.0% of Simon Property Group shares are held by institutional investors. 7.5% of Getty Realty shares are held by insiders. Comparatively, 8.7% of Simon Property Group 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 Ratings

This is a breakdown of current ratings and recommmendations for Getty Realty and Simon Property Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Getty Realty	0	4	3	1	2.62
Simon Property Group	0	13	9	0	2.41

Getty Realty currently has a consensus price target of $36.57, suggesting a potential upside of 26.83%. Simon Property Group has a consensus price target of $228.67, suggesting a potential upside of 0.20%. Given Getty Realty’s stronger consensus rating and higher probable upside, equities analysts plainly believe Getty Realty is more favorable than Simon Property Group.

Dividends

Getty Realty pays an annual dividend of $1.94 per share and has a dividend yield of 6.7%. Simon Property Group pays an annual dividend of $9.00 per share and has a dividend yield of 3.9%. Getty Realty pays out 118.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Simon Property Group pays out 63.5% of its earnings in the form of a dividend. Getty Realty has raised its dividend for 1 consecutive years and Simon Property Group has raised its dividend for 4 consecutive years.

Valuation and Earnings

This table compares Getty Realty and Simon Property Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Getty Realty	$221.73 million	8.73	$79.19 million	$1.64	17.58
Simon Property Group	$6.36 billion	11.60	$4.63 billion	$14.18	16.09

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

Volatility & Risk

Getty Realty has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500. Comparatively, Simon Property Group has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.

Summary

Simon Property Group beats Getty Realty on 13 of the 18 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 Simon Property Group

Simon Property Group, Inc. (NYSE:SPG) is a self-administered and self-managed real estate investment trust (REIT). Simon Property Group, L.P., or the Operating Partnership, is our majority-owned partnership subsidiary that owns all of our real estate properties and other assets. In this package, the terms Simon, we, our, or the Company refer to Simon Property Group, Inc., the Operating Partnership, and its subsidiaries. We own, develop and manage premier shopping, dining, entertainment and mixed-use destinations, which consist primarily of malls, Premium Outlets, The Mills, and International Properties. At June 30, 2024, we owned or had an interest in 230 properties comprising 183 million square feet in North America, Asia and Europe. We also owned an 84% interest in The Taubman Realty Group, or TRG, which owns 22 regional, super-regional, and outlet malls in the U.S. and Asia. Additionally, at June 30, 2024, we had a 22.4% ownership interest in Klépierre, a publicly traded, Paris-based real estate company, which owns shopping centers in 14 European countries.