Analyzing Stag Industrial (NYSE:STAG) & Getty Realty (NYSE:GTY)

Stag Industrial (NYSE:STAG) and Getty Realty (NYSE:GTY) are both mid-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Insider and Institutional Ownership

88.7% of Stag Industrial shares are held by institutional investors. Comparatively, 85.1% of Getty Realty shares are held by institutional investors. 1.1% of Stag Industrial shares are held by insiders. Comparatively, 7.5% of Getty Realty shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Stag Industrial and Getty Realty”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stag Industrial	$845.18 million	8.43	$273.52 million	$1.29	28.87
Getty Realty	$221.73 million	8.90	$79.19 million	$1.52	21.47

Stag Industrial has higher revenue and earnings than Getty Realty. Getty Realty is trading at a lower price-to-earnings ratio than Stag Industrial, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Stag Industrial has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Getty Realty has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Profitability

This table compares Stag Industrial and Getty Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stag Industrial	28.25%	6.80%	3.47%
Getty Realty	40.06%	8.76%	4.32%

Dividends

Stag Industrial pays an annual dividend of $1.55 per share and has a dividend yield of 4.2%. Getty Realty pays an annual dividend of $1.94 per share and has a dividend yield of 5.9%. Stag Industrial pays out 120.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Getty Realty pays out 127.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Stag Industrial has raised its dividend for 7 consecutive years and Getty Realty has raised its dividend for 1 consecutive years.

Analyst Recommendations

This is a summary of current recommendations for Stag Industrial and Getty Realty, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stag Industrial	1	6	2	0	2.11
Getty Realty	0	3	4	0	2.57

Stag Industrial presently has a consensus price target of $40.40, indicating a potential upside of 8.48%. Getty Realty has a consensus price target of $33.60, indicating a potential upside of 2.94%. Given Stag Industrial’s higher probable upside, analysts clearly believe Stag Industrial is more favorable than Getty Realty.

Summary

Getty Realty beats Stag Industrial on 9 of the 17 factors compared between the two stocks.

About Stag Industrial

STAG Industrial, Inc. is a real estate investment company, which engages in acquiring, owning, and managing single-tenant, industrial real estate assets. It offers industrial real estate operating platform to real estate ownership. The company was founded by Benjamin S. Butcher on July 21, 2010 and is headquartered in Boston, MA.

About Getty Realty

Getty Realty Corp. is a publicly traded, net lease REIT specializing in the acquisition, financing and development of convenience, automotive and other single tenant retail real estate. As of December 31, 2023, the Company’s portfolio included 1,093 freestanding properties located in 40 states across the United States and Washington, D.C.