Contrasting Franklin Street Properties (NYSE:FSP) and Brixmor Property Group (NYSE:BRX)

Franklin Street Properties (NYSE:FSP) 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 valuation, dividends, institutional ownership, analyst recommendations, risk, earnings and profitability.

Insider & Institutional Ownership

61.4% of Franklin Street Properties shares are held by institutional investors. Comparatively, 98.4% of Brixmor Property Group shares are held by institutional investors. 6.2% of Franklin Street Properties shares are held by insiders. Comparatively, 0.8% of Brixmor Property Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Franklin Street Properties has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Brixmor Property Group has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500.

Dividends

Franklin Street Properties pays an annual dividend of $0.04 per share and has a dividend yield of 2.3%. Brixmor Property Group pays an annual dividend of $1.09 per share and has a dividend yield of 3.9%. Franklin Street Properties pays out -7.1% of its earnings in the form of a dividend. Brixmor Property Group pays out 117.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares Franklin Street Properties 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
Franklin Street Properties	$133.73 million	1.33	-$48.11 million	($0.56)	-3.08
Brixmor Property Group	$1.26 billion	6.67	$305.09 million	$0.93	29.99

Brixmor Property Group has higher revenue and earnings than Franklin Street Properties. Franklin Street Properties 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Franklin Street Properties	-52.85%	-10.06%	-6.46%
Brixmor Property Group	23.45%	10.34%	3.47%

Analyst Recommendations

This is a summary of recent ratings and price targets for Franklin Street Properties and Brixmor Property Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franklin Street Properties	0	0	0	0	N/A
Brixmor Property Group	0	4	8	0	2.67

Brixmor Property Group has a consensus price target of $28.38, indicating a potential upside of 1.74%. Given Brixmor Property Group’s higher probable upside, analysts plainly believe Brixmor Property Group is more favorable than Franklin Street Properties.

Summary

Brixmor Property Group beats Franklin Street Properties on 13 of the 15 factors compared between the two stocks.

About Franklin Street Properties

Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on infill and central business district (CBD) office properties in the U.S. Sunbelt and Mountain West, as well as select opportunistic markets. FSP seeks value-oriented investments with an eye towards long-term growth and appreciation, as well as current income. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes.

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.