Necessity Retail REIT (NASDAQ:RTL – Get Free Report) and The GPT Group (OTCMKTS:GPTGF – Get Free Report) are both real estate companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.
Profitability
This table compares Necessity Retail REIT and The GPT Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Necessity Retail REIT | -30.43% | -8.87% | -3.07% |
| The GPT Group | N/A | N/A | N/A |
Earnings and Valuation
This table compares Necessity Retail REIT and The GPT Group’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Necessity Retail REIT | $454.86 million | 2.25 | -$82.51 million | ($1.22) | -6.24 |
| The GPT Group | N/A | N/A | N/A | $0.32 | 7.51 |
Insider & Institutional Ownership
59.2% of Necessity Retail REIT shares are held by institutional investors. Comparatively, 31.8% of The GPT Group shares are held by institutional investors. 0.4% of Necessity Retail REIT 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.
Dividends
Necessity Retail REIT pays an annual dividend of $0.85 per share and has a dividend yield of 11.2%. The GPT Group pays an annual dividend of $0.26 per share and has a dividend yield of 10.8%. Necessity Retail REIT pays out -69.7% of its earnings in the form of a dividend. The GPT Group pays out 80.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Necessity Retail REIT has increased its dividend for 2 consecutive years. Necessity Retail REIT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Necessity Retail REIT and The GPT Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Necessity Retail REIT | 0 | 0 | 0 | 0 | N/A |
| The GPT Group | 0 | 1 | 0 | 0 | 2.00 |
Necessity Retail REIT currently has a consensus price target of $8.00, suggesting a potential upside of 5.12%. Given Necessity Retail REIT’s higher probable upside, analysts plainly believe Necessity Retail REIT is more favorable than The GPT Group.
Summary
Necessity Retail REIT beats The GPT Group on 7 of the 12 factors compared between the two stocks.
About Necessity Retail REIT
The Necessity Retail REIT (Nasdaq: RTL) is the preeminent publicly traded real estate investment trust (REIT) focused on "Where America Shops". RTL acquires and manages a diversified portfolio of primarily necessity-based retail single-tenant and open-air shopping center properties in the U.S.
About The GPT Group
GPT is a vertically integrated diversified property group that owns and actively manages a portfolio of high quality Australian retail, office and logistics assets, with assets under management of $32.4 billion. The Group utilises its real estate management platform to enhance returns through property development and funds management.
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