Postal Realty Trust (NYSE:PSTL – Get Free Report) and LXP Industrial Trust (NYSE:LXP – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.
Dividends
Postal Realty Trust pays an annual dividend of $0.96 per share and has a dividend yield of 6.6%. LXP Industrial Trust pays an annual dividend of $0.52 per share and has a dividend yield of 5.2%. Postal Realty Trust pays out 960.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LXP Industrial Trust pays out 1,300.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Postal Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider and Institutional Ownership
57.9% of Postal Realty Trust shares are held by institutional investors. Comparatively, 93.5% of LXP Industrial Trust shares are held by institutional investors. 13.6% of Postal Realty Trust shares are held by company insiders. Comparatively, 2.2% of LXP Industrial Trust 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.
Risk and Volatility
Valuation and Earnings
This table compares Postal Realty Trust and LXP Industrial Trust”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Postal Realty Trust | $63.71 million | 5.26 | $3.71 million | $0.10 | 145.40 |
LXP Industrial Trust | $340.42 million | 8.59 | $30.38 million | $0.04 | 248.50 |
LXP Industrial Trust has higher revenue and earnings than Postal Realty Trust. Postal Realty Trust is trading at a lower price-to-earnings ratio than LXP Industrial Trust, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Postal Realty Trust and LXP Industrial Trust’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Postal Realty Trust | 4.93% | 1.10% | 0.58% |
LXP Industrial Trust | 9.50% | 1.51% | 0.80% |
Analyst Recommendations
This is a summary of current recommendations and price targets for Postal Realty Trust and LXP Industrial Trust, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Postal Realty Trust | 0 | 1 | 1 | 0 | 2.50 |
LXP Industrial Trust | 0 | 1 | 3 | 0 | 2.75 |
Postal Realty Trust currently has a consensus price target of $15.75, indicating a potential upside of 8.32%. LXP Industrial Trust has a consensus price target of $11.00, indicating a potential upside of 10.66%. Given LXP Industrial Trust’s stronger consensus rating and higher probable upside, analysts clearly believe LXP Industrial Trust is more favorable than Postal Realty Trust.
Summary
LXP Industrial Trust beats Postal Realty Trust on 12 of the 16 factors compared between the two stocks.
About Postal Realty Trust
Postal Realty Trust, Inc. (NYSE: PSTL) is an internally managed real estate investment trust that owns properties primarily leased to the United States Postal Service ("USPS"). PSTL is focused on acquiring the network of USPS properties, which provide a critical element of the nation's logistics infrastructure that facilitates cost effective and efficient last-mile delivery solutions. As of December 31, 2023, PSTL owned 1,509 properties (including two properties accounted for as financing leases) located in 49 states and one territory comprising approximately 5.9 million net leasable interior square feet. Subsequent to quarter-end and through February 23, 2024, PSTL closed on eight additional properties comprising approximately 33,000 net leasable interior square feet.
About LXP Industrial Trust
LXP Industrial Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) focused on single-tenant industrial real estate investments across the United States. LXP seeks to expand its industrial portfolio through acquisitions, build-to-suit transactions, sale-leaseback transactions, development projects and other transactions.
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