Analyzing BrightSpire Capital (NYSE:BRSP) & Brixmor Property Group (NYSE:BRX)

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

Earnings and Valuation

This table compares Brixmor Property Group and BrightSpire Capital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brixmor Property Group	$1.25 billion	6.48	$305.09 million	$1.08	24.73
BrightSpire Capital	$298.70 million	2.48	-$15.55 million	($1.02)	-5.60

Brixmor Property Group has higher revenue and earnings than BrightSpire Capital. BrightSpire Capital 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.

Analyst Ratings

This is a breakdown of current ratings and price targets for Brixmor Property Group and BrightSpire Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brixmor Property Group	0	4	8	0	2.67
BrightSpire Capital	1	3	3	0	2.29

Brixmor Property Group presently has a consensus target price of $30.38, suggesting a potential upside of 13.72%. BrightSpire Capital has a consensus target price of $7.45, suggesting a potential upside of 30.47%. Given BrightSpire Capital’s higher possible upside, analysts plainly believe BrightSpire Capital is more favorable than Brixmor Property Group.

Dividends

Brixmor Property Group pays an annual dividend of $1.15 per share and has a dividend yield of 4.3%. BrightSpire Capital pays an annual dividend of $0.64 per share and has a dividend yield of 11.2%. Brixmor Property Group pays out 106.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BrightSpire Capital pays out -62.7% of its earnings in the form of a dividend. BrightSpire Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

Brixmor Property Group has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500. Comparatively, BrightSpire Capital has a beta of 1.88, indicating that its share price is 88% more volatile than the S&P 500.

Insider and Institutional Ownership

98.4% of Brixmor Property Group shares are held by institutional investors. Comparatively, 56.6% of BrightSpire Capital shares are held by institutional investors. 0.8% of Brixmor Property Group shares are held by company insiders. Comparatively, 1.9% of BrightSpire Capital shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Brixmor Property Group and BrightSpire Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brixmor Property Group	25.81%	11.48%	3.81%
BrightSpire Capital	-69.35%	9.44%	2.79%

Summary

Brixmor Property Group beats BrightSpire Capital on 10 of the 15 factors compared between the two stocks.

About Brixmor Property Group

Brixmor Property Group, Inc. operates as a real estate investment trust, which engages in owning and operating a portfolio of grocery anchored community and neighborhood shopping centers. The company was founded in 1985 and is headquartered in New York, NY.

About BrightSpire Capital

BrightSpire Capital, Inc. operates as a commercial real estate (CRE) credit real estate investment trust in the United States and Europe. The company operates through Senior and Mezzanine Loans and Preferred Equity; Net Leased and Other Real Estate; and Corporate and Other segments. It focuses on originating, acquiring, financing, and managing a diversified portfolio of CRE debt investments consisting of first mortgage loans, senior loans, debt securities, mezzanine loans, and preferred equity investments, as well as net leased properties. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as Colony Credit Real Estate, Inc. and changed its name to BrightSpire Capital, Inc. in June 2021. BrightSpire Capital, Inc. was incorporated in 2017 and is headquartered in New York, New York.