Lexington Realty Trust (NYSE: LXP) and Liberty Property Trust (NYSE:LPT) are both mid-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Risk & Volatility

Lexington Realty Trust has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Liberty Property Trust has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Valuation and Earnings

This table compares Lexington Realty Trust and Liberty Property Trust’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Lexington Realty Trust $429.50 million 5.88 $95.62 million $0.27 38.85
Liberty Property Trust $746.71 million 8.80 $356.81 million $2.37 18.81

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

Dividends

Lexington Realty Trust pays an annual dividend of $0.70 per share and has a dividend yield of 6.7%. Liberty Property Trust pays an annual dividend of $1.60 per share and has a dividend yield of 3.6%. Lexington Realty Trust pays out 259.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Liberty Property Trust pays out 67.5% of its earnings in the form of a dividend. Lexington Realty Trust has raised its dividend for 2 consecutive years and Liberty Property Trust has raised its dividend for 6 consecutive years.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Lexington Realty Trust and Liberty Property Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lexington Realty Trust 1 5 1 0 2.00
Liberty Property Trust 0 4 3 0 2.43

Lexington Realty Trust presently has a consensus price target of $10.55, indicating a potential upside of 0.57%. Liberty Property Trust has a consensus price target of $43.40, indicating a potential downside of 2.67%. Given Lexington Realty Trust’s higher probable upside, equities analysts plainly believe Lexington Realty Trust is more favorable than Liberty Property Trust.

Profitability

This table compares Lexington Realty Trust and Liberty Property Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lexington Realty Trust 17.96% 5.29% 2.00%
Liberty Property Trust 47.78% 11.41% 5.69%

Institutional & Insider Ownership

72.4% of Lexington Realty Trust shares are held by institutional investors. Comparatively, 91.8% of Liberty Property Trust shares are held by institutional investors. 3.1% of Lexington Realty Trust shares are held by company insiders. Comparatively, 1.5% of Liberty Property Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Liberty Property Trust beats Lexington Realty Trust on 13 of the 17 factors compared between the two stocks.

Lexington Realty Trust Company Profile

Lexington Realty Trust is a real estate investment trust (REIT). The Company owns a portfolio of equity and debt investments in single-tenant commercial properties. As of December 31, 2016, the Company had equity ownership interests in approximately 195 consolidated real estate properties, located in 40 states and containing an aggregate of approximately 43.3 million square feet of space, approximately 96.0% of which was leased. The Company conducts its operations either directly or indirectly through property owner subsidiaries and lender subsidiaries, which are single purpose entities; an operating partnership, Lepercq Corporate Income Fund L.P. (LCIF), in which the Company is the sole unit holder of the general partner and the sole unit holder of the limited partner that holds a majority of the limited partner interests; Lexington Realty Advisors, Inc. (LRA), a subsidiary of the Company, and investments in joint ventures.

Liberty Property Trust Company Profile

Liberty Property Trust (the Trust) is a self-administered and self-managed Maryland real estate investment trust (REIT). The Trust’s assets are owned directly or indirectly, and substantially all of the Trust’s operations are conducted directly or indirectly, by its subsidiary, Liberty Property Limited Partnership (the Operating Partnership). The Company’s segments include Carolinas/Richmond; Chicago/Milwaukee; Florida; Houston; Lehigh/Central PA; Minnesota; Philadelphia; Southeastern PA; United Kingdom, and Other, which includes Arizona; Atlanta; Cincinnati/Columbus/Indianapolis; Dallas; DC Metro; New Jersey; Southern California, and other. The Company owns and operates industrial properties nationally and owns and operates office properties in a focused group of office markets. Additionally, the Company owns certain assets in the United Kingdom. As of December 31, 2016, the Company owned and operated 450 industrial and 55 office properties totaling 86.0 million square feet.

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