Critical Contrast: Phillips Edison & Company, Inc. (NASDAQ:PECO) vs. Cyrela Brazil Realty S.A. Empreendimentos e Participações (OTCMKTS:CYRBY)

Phillips Edison & Company, Inc. (NASDAQ:PECO) and Cyrela Brazil Realty S.A. Empreendimentos e Participações (OTCMKTS:CYRBY) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, institutional ownership, analyst recommendations, earnings and profitability.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Phillips Edison & Company, Inc. and Cyrela Brazil Realty S.A. Empreendimentos e Participações, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phillips Edison & Company, Inc.	0	4	3	0	2.43
Cyrela Brazil Realty S.A. Empreendimentos e Participações	0	0	0	0	0.00

Phillips Edison & Company, Inc. presently has a consensus target price of $38.43, indicating a potential downside of 1.97%. Given Phillips Edison & Company, Inc.’s stronger consensus rating and higher probable upside, research analysts clearly believe Phillips Edison & Company, Inc. is more favorable than Cyrela Brazil Realty S.A. Empreendimentos e Participações.

Dividends

Phillips Edison & Company, Inc. pays an annual dividend of $1.23 per share and has a dividend yield of 3.1%. Cyrela Brazil Realty S.A. Empreendimentos e Participações pays an annual dividend of $0.14 per share and has a dividend yield of 4.7%. Phillips Edison & Company, Inc. pays out 267.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cyrela Brazil Realty S.A. Empreendimentos e Participações pays out 19.7% of its earnings in the form of a dividend. Cyrela Brazil Realty S.A. Empreendimentos e Participações is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Phillips Edison & Company, Inc. and Cyrela Brazil Realty S.A. Empreendimentos e Participações”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phillips Edison & Company, Inc.	$610.12 million	7.88	$56.85 million	$0.46	85.22
Cyrela Brazil Realty S.A. Empreendimentos e Participações	$1.25 billion	N/A	$188.70 million	$0.71	4.24

Cyrela Brazil Realty S.A. Empreendimentos e Participações has higher revenue and earnings than Phillips Edison & Company, Inc.. Cyrela Brazil Realty S.A. Empreendimentos e Participações 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 Phillips Edison & Company, Inc. and Cyrela Brazil Realty S.A. Empreendimentos e Participações’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Phillips Edison & Company, Inc.	9.03%	2.22%	1.18%
Cyrela Brazil Realty S.A. Empreendimentos e Participações	19.37%	15.77%	7.66%

Risk and Volatility

Phillips Edison & Company, Inc. has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500. Comparatively, Cyrela Brazil Realty S.A. Empreendimentos e Participações has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Insider and Institutional Ownership

80.7% of Phillips Edison & Company, Inc. shares are owned by institutional investors. 7.9% of Phillips Edison & Company, Inc. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Cyrela Brazil Realty S.A. Empreendimentos e Participações beats Phillips Edison & Company, Inc. on 9 of the 15 factors compared between the two stocks.

About Phillips Edison & Company, Inc.

Phillips Edison & Company, Inc. (PECO) is one of the nation's largest owners and operators of omni-channel grocery-anchored shopping centers. Founded in 1991, PECO has generated strong results through its vertically-integrated operating platform and national footprint of well-occupied shopping centers. PECO's centers feature a mix of national and regional retailers providing necessity-based goods and services in fundamentally strong markets throughout the United States. PECO's top grocery anchors include Kroger, Publix, Albertsons and Ahold Delhaize. As of December 31, 2023, PECO managed 301 shopping centers, including 281 wholly-owned centers comprising 32.2 million square feet across 31 states and 20 shopping centers owned in one institutional joint venture. PECO is exclusively focused on creating great omni-channel, grocery-anchored shopping experiences and improving communities, one neighborhood shopping center at a time.

About Cyrela Brazil Realty S.A. Empreendimentos e Participações

Cyrela Brazil Realty S.A. Empreendimentos e Participações develops and constructs residential properties in Brazil. It also provides real estate services, such as construction management and technical consultancy services. The company was founded in 1962 and is headquartered in São Paulo, Brazil.