Critical Review: LuxUrban Hotels (NASDAQ:LUXH) vs. Getty Realty (NYSE:GTY)

LuxUrban Hotels (NASDAQ:LUXH) and Getty Realty (NYSE:GTY) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Insider & Institutional Ownership

28.5% of LuxUrban Hotels shares are held by institutional investors. Comparatively, 85.1% of Getty Realty shares are held by institutional investors. 51.5% of LuxUrban Hotels shares are held by insiders. Comparatively, 9.2% of Getty Realty shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LuxUrban Hotels	-77.31%	-11.23%	-2.14%
Getty Realty	33.49%	6.98%	3.59%

Volatility and Risk

LuxUrban Hotels has a beta of -1.43, indicating that its share price is 243% less volatile than the S&P 500. Comparatively, Getty Realty has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for LuxUrban Hotels and Getty Realty, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LuxUrban Hotels	0	2	1	0	2.33
Getty Realty	0	2	1	0	2.33

LuxUrban Hotels currently has a consensus target price of $4.00, suggesting a potential upside of 4,594.84%. Getty Realty has a consensus target price of $32.00, suggesting a potential upside of 0.00%. Given LuxUrban Hotels’ higher possible upside, research analysts clearly believe LuxUrban Hotels is more favorable than Getty Realty.

Earnings & Valuation

This table compares LuxUrban Hotels and Getty Realty”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LuxUrban Hotels	$119.68 million	0.03	-$78.52 million	($2.38)	-0.04
Getty Realty	$185.85 million	9.33	$60.15 million	$1.17	27.35

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

Summary

Getty Realty beats LuxUrban Hotels on 10 of the 12 factors compared between the two stocks.

About LuxUrban Hotels

LuxUrban Hotels Inc. utilizes an asset light business model to lease entire hotels on a long-term basis and rent out hotel rooms in the properties it leases. It manages a portfolio of hotel rooms in New York, Washington D.C., Miami Beach, New Orleans, and Los Angeles. The company was formerly known as CorpHousing Group Inc. and changed its name to LuxUrban Hotels Inc. in November 2022. The company was incorporated in 2017 and is headquartered in Miami, Florida.

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.