FrontView REIT (NYSE:FVR) & Getty Realty (NYSE:GTY) Critical Review

FrontView REIT (NYSE:FVR) and Getty Realty (NYSE:GTY) are both small-cap real estate companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations and price targets for FrontView REIT and Getty Realty, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FrontView REIT	0	4	7	2	2.85
Getty Realty	0	4	5	0	2.56

FrontView REIT currently has a consensus target price of $22.06, indicating a potential upside of 32.74%. Getty Realty has a consensus target price of $35.75, indicating a potential upside of 28.24%. Given FrontView REIT’s stronger consensus rating and higher possible upside, analysts plainly believe FrontView REIT is more favorable than Getty Realty.

Dividends

FrontView REIT pays an annual dividend of $0.86 per share and has a dividend yield of 5.2%. Getty Realty pays an annual dividend of $1.94 per share and has a dividend yield of 7.0%. FrontView REIT pays out 2,866.7% 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 118.3% 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 has increased its dividend for 1 consecutive years. Getty Realty is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares FrontView REIT and Getty Realty”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FrontView REIT	$67.11 million	6.06	-$3.83 million	$0.03	553.83
Getty Realty	$221.73 million	7.79	$79.19 million	$1.64	17.00

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

Volatility and Risk

FrontView REIT has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Getty Realty has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FrontView REIT	2.10%	0.29%	0.17%
Getty Realty	42.74%	9.27%	4.58%

Institutional & Insider Ownership

85.1% of Getty Realty shares are held by institutional investors. 9.6% of FrontView REIT shares are held by company insiders. Comparatively, 7.5% of Getty Realty shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Getty Realty beats FrontView REIT on 11 of the 18 factors compared between the two stocks.

About FrontView REIT

FrontView REIT specializes in real estate investing.

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.