Seritage Growth Properties (NYSE:SRG – Get Free Report) and Alexander’s (NYSE:ALX – Get Free Report) are both small-cap real estate companies, but which is the better stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, risk, dividends and earnings.
Profitability
This table compares Seritage Growth Properties and Alexander’s’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Seritage Growth Properties | -419.02% | -17.06% | -12.94% |
| Alexander’s | 79.06% | 123.09% | 14.43% |
Valuation and Earnings
This table compares Seritage Growth Properties and Alexander’s”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Seritage Growth Properties | $18.20 million | 5.17 | -$68.21 million | ($1.04) | -1.61 |
| Alexander’s | $213.18 million | 6.04 | $28.22 million | $33.05 | 7.63 |
Alexander’s has higher revenue and earnings than Seritage Growth Properties. Seritage Growth Properties is trading at a lower price-to-earnings ratio than Alexander’s, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
78.9% of Seritage Growth Properties shares are held by institutional investors. Comparatively, 32.0% of Alexander’s shares are held by institutional investors. 0.2% of Seritage Growth Properties shares are held by insiders. Comparatively, 26.4% of Alexander’s shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Seritage Growth Properties and Alexander’s, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Seritage Growth Properties | 1 | 0 | 0 | 0 | 1.00 |
| Alexander’s | 1 | 1 | 1 | 0 | 2.00 |
Alexander’s has a consensus target price of $192.00, indicating a potential downside of 23.82%. Given Alexander’s’ stronger consensus rating and higher possible upside, analysts plainly believe Alexander’s is more favorable than Seritage Growth Properties.
Volatility and Risk
Seritage Growth Properties has a beta of 2.26, indicating that its share price is 126% more volatile than the S&P 500. Comparatively, Alexander’s has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500.
Summary
Alexander’s beats Seritage Growth Properties on 12 of the 14 factors compared between the two stocks.
About Seritage Growth Properties
Seritage Growth Properties operates as a real estate investment trust. The firm engages in the acquisition, ownership, development, redevelopment, management, and leasing of retail properties throughout the United States. Its property portfolio includes mall, shopping centers and freestanding locations. The company was founded on June 3, 2015 and is headquartered in New York, NY.
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.
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