Financial Comparison: Rithm Capital (NYSE:RITM) & Phillips Edison & Company, Inc. (NASDAQ:PECO) (2024)

Phillips Edison & Company, Inc. (NASDAQ:PECO – Get Free Report) and Rithm Capital (NYSE:RITM – Get Free Report) are both mid-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Phillips Edison & Company, Inc. and Rithm Capital, as reported by MarketBeat.com.

Phillips Edison & Company, Inc. presently has a consensus price target of $37.43, suggesting a potential upside of 16.13%. Rithm Capital has a consensus price target of $12.32, suggesting a potential upside of 10.38%. Given Phillips Edison & Company, Inc.’s higher possible upside, equities research analysts clearly believe Phillips Edison & Company, Inc. is more favorable than Rithm Capital.

Institutional and Insider Ownership

80.7% of Phillips Edison & Company, Inc. shares are owned by institutional investors. Comparatively, 44.9% of Rithm Capital shares are owned by institutional investors. 8.0% of Phillips Edison & Company, Inc. shares are owned by company insiders. Comparatively, 0.4% of Rithm Capital shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Phillips Edison & Company, Inc. has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500. Comparatively, Rithm Capital has a beta of 1.8, indicating that its share price is 80% more volatile than the S&P 500.

Dividends

Phillips Edison & Company, Inc. pays an annual dividend of $1.17 per share and has a dividend yield of 3.6%. Rithm Capital pays an annual dividend of $1.00 per share and has a dividend yield of 9.0%. Phillips Edison & Company, Inc. pays out 254.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rithm Capital pays out 66.7% of its earnings in the form of a dividend. Rithm Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Phillips Edison & Company, Inc. and Rithm Capital’s net margins, return on equity and return on assets.

Valuation & Earnings

This table compares Phillips Edison & Company, Inc. and Rithm Capital’s top-line revenue, earnings per share (EPS) and valuation.

Rithm Capital has higher revenue and earnings than Phillips Edison & Company, Inc.. Rithm Capital is trading at a lower price-to-earnings ratio than Phillips Edison & Company, Inc., indicating that it is currently the more affordable of the two stocks.

Summary

Rithm Capital beats Phillips Edison & Company, Inc. on 11 of the 16 factors compared between the two stocks.

About Phillips Edison & Company, Inc.

(Get Free Report)

Phillips Edison & Company, Inc. (PECO) is one of the nation's largest owners and operators of omni-channel grocery-anchored shopping centers. Founded in 1991, PECO has generated strong results through its vertically-integrated operating platform and national footprint of well-occupied shopping centers. PECO's centers feature a mix of national and regional retailers providing necessity-based goods and services in fundamentally strong markets throughout the United States. PECO's top grocery anchors include Kroger, Publix, Albertsons and Ahold Delhaize. As of December 31, 2023, PECO managed 301 shopping centers, including 281 wholly-owned centers comprising 32.2 million square feet across 31 states and 20 shopping centers owned in one institutional joint venture. PECO is exclusively focused on creating great omni-channel, grocery-anchored shopping experiences and improving communities, one neighborhood shopping center at a time.

About Rithm Capital

(Get Free Report)

Rithm Capital Corp. operates as an asset manager focused on real estate, credit, and financial services. It operates through Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable, and Asset Management segments. Its investment portfolio primarily comprises of mortgage servicing rights (MSR), and MSR financing receivables, title, appraisal and property preservation, excess MSRs, and services advance investments; real estate securities, call rights, SFR properties, and residential mortgage loans; consumer and business purpose loans; and asset management related investments. 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 New Residential Investment Corp. and changed its name to Rithm Capital Corp. in August 2022. Rithm Capital Corp. was incorporated in 2011 and is based in New York, New York.

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