Financial Survey: Brixmor Property Group (NYSE:BRX) and Sotherly Hotels (NASDAQ:SOHO)

Brixmor Property Group (NYSE:BRX) and Sotherly Hotels (NASDAQ:SOHO) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Brixmor Property Group	24.50%	10.63%	3.66%
Sotherly Hotels	2.27%	7.81%	0.98%

Dividends

Brixmor Property Group pays an annual dividend of $1.09 per share and has a dividend yield of 5.0%. Sotherly Hotels pays an annual dividend of $0.52 per share and has a dividend yield of 39.7%. Brixmor Property Group pays out 107.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sotherly Hotels pays out -247.6% of its earnings in the form of a dividend. Brixmor Property Group has increased its dividend for 3 consecutive years. Sotherly Hotels is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Brixmor Property Group and Sotherly Hotels, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brixmor Property Group	0	3	4	0	2.57
Sotherly Hotels	0	1	0	0	2.00

Brixmor Property Group currently has a consensus price target of $25.38, suggesting a potential upside of 16.83%. Sotherly Hotels has a consensus price target of $2.25, suggesting a potential upside of 71.64%. Given Sotherly Hotels’ higher possible upside, analysts plainly believe Sotherly Hotels is more favorable than Brixmor Property Group.

Risk & Volatility

Brixmor Property Group has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500. Comparatively, Sotherly Hotels has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500.

Valuation & Earnings

This table compares Brixmor Property Group and Sotherly Hotels’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brixmor Property Group	$1.25 billion	5.26	$305.09 million	$1.01	21.51
Sotherly Hotels	$173.84 million	0.15	$3.94 million	($0.21)	-6.24

Brixmor Property Group has higher revenue and earnings than Sotherly Hotels. Sotherly Hotels 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.

Institutional and Insider Ownership

98.4% of Brixmor Property Group shares are owned by institutional investors. Comparatively, 27.5% of Sotherly Hotels shares are owned by institutional investors. 0.8% of Brixmor Property Group shares are owned by company insiders. Comparatively, 15.9% of Sotherly Hotels shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Brixmor Property Group beats Sotherly Hotels on 12 of the 17 factors compared between the two stocks.

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.

About Sotherly Hotels

Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the Southern United States. Sotherly may also opportunistically acquire hotels throughout the United States. Currently, the Company's portfolio consists of investments in ten hotel properties, comprising 2,786 rooms, as well as interests in two condominium hotels and their associated rental programs. The Company owns hotels that operate under the Hilton Worldwide and Hyatt Hotels Corporation brands, as well as independent hotels. Sotherly Hotels Inc. was organized in 2004 and is headquartered in Williamsburg, Virginia.