Head-To-Head Review: Phillips Edison & Company, Inc. (NASDAQ:PECO) and Site Centers (NYSE:SITC)

Site Centers (NYSE:SITC) and Phillips Edison & Company, Inc. (NASDAQ:PECO) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.

Profitability

This table compares Site Centers and Phillips Edison & Company, Inc.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Site Centers	189.28%	31.31%	22.05%
Phillips Edison & Company, Inc.	9.91%	2.64%	1.35%

Risk and Volatility

Site Centers has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500. Comparatively, Phillips Edison & Company, Inc. has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.

Insider and Institutional Ownership

88.7% of Site Centers shares are held by institutional investors. Comparatively, 80.7% of Phillips Edison & Company, Inc. shares are held by institutional investors. 0.2% of Site Centers shares are held by insiders. Comparatively, 8.0% of Phillips Edison & Company, Inc. shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Site Centers and Phillips Edison & Company, Inc., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Site Centers	0	6	2	0	2.25
Phillips Edison & Company, Inc.	0	4	2	0	2.33

Site Centers currently has a consensus target price of $35.25, suggesting a potential upside of 207.99%. Phillips Edison & Company, Inc. has a consensus target price of $38.50, suggesting a potential upside of 14.14%. Given Site Centers’ higher possible upside, research analysts plainly believe Site Centers is more favorable than Phillips Edison & Company, Inc..

Earnings and Valuation

This table compares Site Centers and Phillips Edison & Company, Inc.”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Site Centers	$271.09 million	2.21	$531.82 million	$10.32	1.11
Phillips Edison & Company, Inc.	$661.39 million	6.41	$62.69 million	$0.55	61.33

Site Centers has higher earnings, but lower revenue than Phillips Edison & Company, Inc.. Site Centers 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.

Summary

Site Centers beats Phillips Edison & Company, Inc. on 8 of the 13 factors compared between the two stocks.

About Site Centers

SITE Centers is an owner and manager of open-air shopping centers located in suburban, high household income communities. The Company is a self-administered and self-managed REIT operating as a fully integrated real estate company, and is publicly traded on the New York Stock Exchange under the ticker symbol SITC.

About Phillips Edison & Company, Inc.

Phillips Edison & Co., Inc. is a real estate investment trust, which engages in the ownership and operation of shopping centers. It also offers an investment management business providing property management and advisory services. Its portfolio consists of well-occupied, grocery-anchored neighborhood and community shopping centers having a mix of national, regional, and local retailers offering necessity-based goods and services. The company was founded by Jeffrey S. Edison and Michael C. Phillips in 1991 and is headquartered in Cincinnati, OH.