Head to Head Analysis: Terreno Realty (NYSE:TRNO) & NETSTREIT (NYSE:NTST)

Terreno Realty (NYSE:TRNO) and NETSTREIT (NYSE:NTST) are both mid-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Valuation and Earnings

This table compares Terreno Realty and NETSTREIT”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Terreno Realty	$476.38 million	14.77	$402.99 million	$3.90	16.97
NETSTREIT	$195.01 million	10.32	$6.90 million	$0.13	159.11

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Terreno Realty and NETSTREIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Terreno Realty	1	2	8	1	2.75
NETSTREIT	0	3	12	0	2.80

Terreno Realty presently has a consensus price target of $69.50, suggesting a potential upside of 5.04%. NETSTREIT has a consensus price target of $22.10, suggesting a potential upside of 6.83%. Given NETSTREIT’s stronger consensus rating and higher possible upside, analysts clearly believe NETSTREIT is more favorable than Terreno Realty.

Dividends

Terreno Realty pays an annual dividend of $2.08 per share and has a dividend yield of 3.1%. NETSTREIT pays an annual dividend of $0.88 per share and has a dividend yield of 4.3%. Terreno Realty pays out 53.3% of its earnings in the form of a dividend. NETSTREIT pays out 676.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Terreno Realty has raised its dividend for 5 consecutive years and NETSTREIT has raised its dividend for 1 consecutive years.

Profitability

This table compares Terreno Realty and NETSTREIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Terreno Realty	86.44%	10.35%	7.98%
NETSTREIT	5.29%	0.78%	0.43%

Risk and Volatility

Terreno Realty has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, NETSTREIT has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.

Summary

Terreno Realty beats NETSTREIT on 11 of the 16 factors compared between the two stocks.

About Terreno Realty

Terreno Realty Corporation (Terreno, and together with its subsidiaries, the Company) acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. All square feet, acres, occupancy and number of properties disclosed in these notes to the consolidated financial statements are unaudited. As of December 31, 2023, the Company owned 259 buildings aggregating approximately 16.0 million square feet, 45 improved land parcels consisting of approximately 152.4 acres, seven properties under development or redevelopment and approximately 62.7 acres of land entitled for future development. The Company is an internally managed Maryland corporation and elected to be taxed as a real estate investment trust (REIT) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the Code), commencing with its taxable year ended December 31, 2010.

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.