Comparing Alexander’s (NYSE:ALX) & Seritage Growth Properties (NYSE:SRG)

Seritage Growth Properties (NYSE:SRG) and Alexander’s (NYSE:ALX) are both small-cap real estate companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.

Volatility and Risk

Seritage Growth Properties has a beta of 2.19, meaning that its share price is 119% more volatile than the S&P 500. Comparatively, Alexander’s has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Seritage Growth Properties and Alexander’s, as provided 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 price target of $212.00, suggesting a potential downside of 14.82%. Given Alexander’s’ stronger consensus rating and higher possible upside, analysts clearly believe Alexander’s is more favorable than Seritage Growth Properties.

Earnings & Valuation

This table compares Seritage Growth Properties and Alexander’s”s gross 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	5.43	-$68.21 million	($1.04)	-1.69
Alexander’s	$213.18 million	5.97	$28.22 million	$33.05	7.53

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.

Institutional & Insider 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 company insiders. Comparatively, 26.4% of Alexander’s shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

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%

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.