Rithm Capital (NYSE:RITM) & Phillips Edison & Company, Inc. (NASDAQ:PECO) Head to Head Review (2024)

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

Earnings & Valuation

This table compares Rithm Capital and Phillips Edison & Company, Inc.’s gross revenue, earnings per share 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.

Dividends

Rithm Capital pays an annual dividend of $1.00 per share and has a dividend yield of 8.9%. Phillips Edison & Company, Inc. pays an annual dividend of $1.17 per share and has a dividend yield of 3.7%. Rithm Capital pays out 66.7% of its earnings in the form of a dividend. Phillips Edison & Company, Inc. pays out 254.4% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

Institutional & Insider Ownership

44.9% of Rithm Capital shares are held by institutional investors. Comparatively, 80.7% of Phillips Edison & Company, Inc. shares are held by institutional investors. 0.4% of Rithm Capital shares are held by insiders. Comparatively, 7.9% of Phillips Edison & Company, Inc. shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Rithm Capital and Phillips Edison & Company, Inc., as provided by MarketBeat.

Rithm Capital currently has a consensus target price of $12.32, indicating a potential upside of 10.08%. Phillips Edison & Company, Inc. has a consensus target price of $37.43, indicating a potential upside of 17.37%. Given Phillips Edison & Company, Inc.’s higher possible upside, analysts plainly believe Phillips Edison & Company, Inc. is more favorable than Rithm Capital.

Risk & Volatility

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

Summary

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

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.

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.

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