Lexington Realty Trust (LXP) & Equity Commonwealth (EQC) Critical Contrast
Lexington Realty Trust (NYSE:LXP) and Equity Commonwealth (NYSE:EQC) are both mid-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.
Volatility and Risk
Lexington Realty Trust has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Equity Commonwealth has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500.
This is a summary of recent ratings and target prices for Lexington Realty Trust and Equity Commonwealth, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lexington Realty Trust||2||2||2||0||2.00|
Lexington Realty Trust presently has a consensus price target of $8.60, indicating a potential downside of 1.83%. Equity Commonwealth has a consensus price target of $33.00, indicating a potential upside of 3.81%. Given Equity Commonwealth’s stronger consensus rating and higher probable upside, analysts clearly believe Equity Commonwealth is more favorable than Lexington Realty Trust.
Institutional and Insider Ownership
75.0% of Lexington Realty Trust shares are held by institutional investors. Comparatively, 97.2% of Equity Commonwealth shares are held by institutional investors. 3.3% of Lexington Realty Trust shares are held by company insiders. Comparatively, 1.3% of Equity Commonwealth shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Lexington Realty Trust pays an annual dividend of $0.71 per share and has a dividend yield of 8.1%. Equity Commonwealth does not pay a dividend. Lexington Realty Trust pays out 73.2% of its earnings in the form of a dividend. Lexington Realty Trust has increased its dividend for 7 consecutive years.
This table compares Lexington Realty Trust and Equity Commonwealth’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Lexington Realty Trust||56.75%||19.03%||6.80%|
Valuation and Earnings
This table compares Lexington Realty Trust and Equity Commonwealth’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Lexington Realty Trust||$391.64 million||5.28||$85.58 million||$0.97||9.03|
|Equity Commonwealth||$340.57 million||11.34||$29.65 million||$0.92||34.55|
Lexington Realty Trust has higher revenue and earnings than Equity Commonwealth. Lexington Realty Trust is trading at a lower price-to-earnings ratio than Equity Commonwealth, indicating that it is currently the more affordable of the two stocks.
Lexington Realty Trust beats Equity Commonwealth on 10 of the 17 factors compared between the two stocks.
Lexington Realty Trust Company Profile
Lexington Realty Trust (NYSE:LXP) is a publicly traded real estate investment trust (REIT) that owns a diversified portfolio of real estate assets consisting primarily of equity investments in single-tenant net-leased commercial properties across the United States. Lexington seeks to expand its portfolio through build-to-suit transactions, sale-leaseback transactions and other transactions, including acquisitions.
Equity Commonwealth Company Profile
Equity Commonwealth (NYSE: EQC) is a Chicago based, internally managed and self-advised real estate investment trust (REIT) with commercial office properties in the United States. As of June 30, 2018, EQC's portfolio comprised 13 properties and 6.3 million square feet.
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