Head-To-Head Comparison: Alexander’s (NYSE:ALX) and NETSTREIT (NYSE:NTST)

Alexander’s (NYSE:ALX) and NETSTREIT (NYSE:NTST) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.

Dividends

Alexander’s pays an annual dividend of $18.00 per share and has a dividend yield of 7.0%. NETSTREIT pays an annual dividend of $0.88 per share and has a dividend yield of 4.5%. Alexander’s pays out 450.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NETSTREIT pays out 676.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alexander’s has increased its dividend for 1 consecutive years and NETSTREIT has increased its dividend for 1 consecutive years. Alexander’s is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

32.0% of Alexander’s shares are owned by institutional investors. 26.4% of Alexander’s shares are owned by insiders. Comparatively, 0.7% of NETSTREIT shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Alexander’s and NETSTREIT”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alexander’s	$213.18 million	6.13	$28.22 million	$4.00	63.89
NETSTREIT	$195.01 million	9.72	$6.90 million	$0.13	149.84

Alexander’s has higher revenue and earnings than NETSTREIT. Alexander’s is trading at a lower price-to-earnings ratio than NETSTREIT, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Alexander’s and NETSTREIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alexander’s	0	2	0	0	2.00
NETSTREIT	0	3	13	0	2.81

NETSTREIT has a consensus target price of $22.52, indicating a potential upside of 15.60%. Given NETSTREIT’s stronger consensus rating and higher probable upside, analysts clearly believe NETSTREIT is more favorable than Alexander’s.

Profitability

This table compares Alexander’s and NETSTREIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alexander’s	9.72%	17.38%	1.71%
NETSTREIT	5.29%	0.78%	0.43%

Volatility and Risk

Alexander’s has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, NETSTREIT has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.

Summary

Alexander’s beats NETSTREIT on 10 of the 16 factors compared between the two stocks.

About Alexander’s

Alexander’s, Inc. (NYSE: ALX) is a real estate investment trust (REIT), incorporated in Delaware, engaged in leasing, managing, developing and redeveloping its properties. All references to we, us, our, Company and Alexander’s refer to Alexander’s, Inc. and its consolidated subsidiaries. We are managed by, and our properties are leased and developed by, Vornado Realty Trust (Vornado) (NYSE: VNO). We have five properties in New York City.

About NETSTREIT

NETSTREIT Corp. is an internally managed real estate investment trust (REIT) based in Dallas, Texas that specializes in acquiring single-tenant net lease retail properties nationwide. The growing portfolio consists of high-quality properties leased to e-commerce resistant tenants with healthy balance sheets. Led by a management team of seasoned commercial real estate executives, NETSTREIT’s strategy is to create the highest quality net lease retail portfolio in the country with the goal of generating consistent cash flows and dividends for its investors.