Financial Analysis: Douglas Emmett (NYSE:DEI) & NETSTREIT (NYSE:NTST)

Douglas Emmett (NYSE:DEI) and NETSTREIT (NYSE:NTST) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.

Earnings & Valuation

This table compares Douglas Emmett and NETSTREIT”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Douglas Emmett	$1.00 billion	1.68	$16.27 million	$0.09	112.06
NETSTREIT	$195.01 million	10.23	$6.90 million	$0.09	228.33

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Douglas Emmett and NETSTREIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Douglas Emmett	1	8	1	0	2.00
NETSTREIT	0	2	10	1	2.92

Douglas Emmett presently has a consensus price target of $13.28, indicating a potential upside of 31.66%. NETSTREIT has a consensus price target of $21.08, indicating a potential upside of 2.60%. Given Douglas Emmett’s higher possible upside, research analysts plainly believe Douglas Emmett is more favorable than NETSTREIT.

Dividends

Douglas Emmett pays an annual dividend of $0.76 per share and has a dividend yield of 7.5%. NETSTREIT pays an annual dividend of $0.86 per share and has a dividend yield of 4.2%. Douglas Emmett pays out 844.4% 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 955.6% 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 has raised its dividend for 1 consecutive years. Douglas Emmett is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Douglas Emmett	1.62%	0.46%	0.17%
NETSTREIT	3.54%	0.51%	0.29%

Volatility and Risk

Douglas Emmett has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, NETSTREIT has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.

Insider and Institutional Ownership

97.4% of Douglas Emmett shares are held by institutional investors. 15.1% of Douglas Emmett shares are held by company insiders. Comparatively, 0.6% of NETSTREIT shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

NETSTREIT beats Douglas Emmett on 9 of the 17 factors compared between the two stocks.

About Douglas Emmett

Douglas Emmett, Inc. (DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities.

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.