Regency Centers (NYSE:REG) and Broadmark Realty Capital (NYSE:BRMK) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Insider & Institutional Ownership

93.9% of Regency Centers shares are held by institutional investors. Comparatively, 54.3% of Broadmark Realty Capital shares are held by institutional investors. 1.1% of Regency Centers shares are held by company insiders. Comparatively, 4.3% of Broadmark Realty Capital shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Regency Centers pays an annual dividend of $2.38 per share and has a dividend yield of 5.7%. Broadmark Realty Capital pays an annual dividend of $0.72 per share and has a dividend yield of 7.1%. Regency Centers pays out 64.5% of its earnings in the form of a dividend. Regency Centers has increased its dividend for 1 consecutive years and Broadmark Realty Capital has increased its dividend for 1 consecutive years.

Valuation and Earnings

This table compares Regency Centers and Broadmark Realty Capital’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Regency Centers $984.33 million 7.20 $176.07 million $3.69 11.32
Broadmark Realty Capital $130.98 million 10.29 $75.24 million N/A N/A

Regency Centers has higher revenue and earnings than Broadmark Realty Capital.

Volatility and Risk

Regency Centers has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500. Comparatively, Broadmark Realty Capital has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Regency Centers and Broadmark Realty Capital, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Regency Centers 1 7 6 0 2.36
Broadmark Realty Capital 0 0 0 0 N/A

Regency Centers currently has a consensus target price of $50.42, suggesting a potential upside of 20.70%. Given Regency Centers’ higher possible upside, analysts clearly believe Regency Centers is more favorable than Broadmark Realty Capital.

Profitability

This table compares Regency Centers and Broadmark Realty Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Regency Centers 23.19% 3.86% 2.29%
Broadmark Realty Capital N/A 7.79% 6.99%

Summary

Broadmark Realty Capital beats Regency Centers on 7 of the 13 factors compared between the two stocks.

About Regency Centers

Regency Centers is the preeminent national owner, operator, and developer of shopping centers located in affluent and densely populated trade areas. Our portfolio includes thriving properties merchandised with highly productive grocers, restaurants, service providers, and best-in-class retailers that connect to their neighborhoods, communities, and customers. Operating as a fully integrated real estate company, Regency Centers is a qualified real estate investment trust (REIT) that is self-administered, self-managed, and an S&P 500 Index member.

About Broadmark Realty Capital

Broadmark Realty Capital Inc. provides short-term and first deed of trust loans secured by real estate to fund the acquisition, renovation, rehabilitation, and development of residential and commercial properties in the United States. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. Broadmark Realty Capital Inc. was founded in 2010 and is headquartered in Seattle, Washington.

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