Contrasting The GPT Group (OTCMKTS:GPTGF) & Alexander’s (NYSE:ALX)

Alexander’s (NYSE:ALX) and The GPT Group (OTCMKTS:GPTGF) are both real estate companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.

Analyst Ratings

This is a summary of recent recommendations and price targets for Alexander’s and The GPT Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alexander’s	1	0	1	1	2.67
The GPT Group	0	0	0	0	0.00

Alexander’s presently has a consensus target price of $212.00, suggesting a potential downside of 22.56%. Given Alexander’s’ stronger consensus rating and higher probable upside, equities analysts clearly believe Alexander’s is more favorable than The GPT Group.

Earnings & Valuation

This table compares Alexander’s and The GPT Group”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	6.56	$28.22 million	$33.05	8.28
The GPT Group	N/A	N/A	N/A	$0.32	10.67

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

Profitability

This table compares Alexander’s and The GPT Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alexander’s	79.06%	123.09%	14.43%
The GPT Group	N/A	N/A	N/A

Dividends

Alexander’s pays an annual dividend of $18.00 per share and has a dividend yield of 6.6%. The GPT Group pays an annual dividend of $0.26 per share and has a dividend yield of 7.6%. Alexander’s pays out 54.5% of its earnings in the form of a dividend. The GPT Group pays out 80.7% 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.

Insider & Institutional Ownership

32.0% of Alexander’s shares are held by institutional investors. Comparatively, 31.8% of The GPT Group shares are held by institutional investors. 26.4% of Alexander’s shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Alexander’s beats The GPT Group on 13 of the 15 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 The GPT Group

GPT is a vertically integrated diversified property group that owns and actively manages a portfolio of high quality Australian retail, office and logistics assets, with assets under management of $32.4 billion. The Group utilises its real estate management platform to enhance returns through property development and funds management.