Reviewing Nexus Industrial REIT (OTCMKTS:EFRTF) and Stag Industrial (NYSE:STAG)

Nexus Industrial REIT (OTCMKTS:EFRTF) and Stag Industrial (NYSE:STAG) are both real estate companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Institutional & Insider Ownership

88.7% of Stag Industrial shares are held by institutional investors. 1.1% of Stag Industrial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Nexus Industrial REIT and Stag Industrial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nexus Industrial REIT	N/A	N/A	N/A
Stag Industrial	28.04%	6.79%	3.43%

Analyst Recommendations

This is a summary of recent ratings and target prices for Nexus Industrial REIT and Stag Industrial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nexus Industrial REIT	0	2	0	0	2.00
Stag Industrial	1	6	3	0	2.20

Stag Industrial has a consensus target price of $50.50, suggesting a potential upside of 37.50%. Given Stag Industrial’s stronger consensus rating and higher probable upside, analysts plainly believe Stag Industrial is more favorable than Nexus Industrial REIT.

Valuation and Earnings

This table compares Nexus Industrial REIT and Stag Industrial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nexus Industrial REIT	N/A	N/A	N/A	($0.20)	-28.39
Stag Industrial	$880.59 million	8.04	$273.52 million	$1.30	28.25

Stag Industrial has higher revenue and earnings than Nexus Industrial REIT. Nexus Industrial REIT is trading at a lower price-to-earnings ratio than Stag Industrial, indicating that it is currently the more affordable of the two stocks.

Summary

Stag Industrial beats Nexus Industrial REIT on 11 of the 11 factors compared between the two stocks.

About Nexus Industrial REIT

Nexus Industrial REIT is a growth-oriented real estate investment trust focused on increasing unitholder value through the acquisition of industrial properties located in primary and secondary markets in Canada, and the ownership and management of its portfolio of properties. The REIT currently owns a portfolio of 116 properties (including two properties held for development in which the REIT has an 80% interest) comprising approximately 12.4 million square feet of gross leasable area. The REIT has approximately 93,038,000 voting units issued and outstanding, including approximately 68,427,000 REIT Units and approximately 24,611,000 Class B LP Units of subsidiary limited partnerships of Nexus, which are convertible to REIT Units on a one-to-one basis.

About Stag Industrial

STAG Industrial, Inc. is a real estate investment company, which engages in acquiring, owning, and managing single-tenant, industrial real estate assets. It offers industrial real estate operating platform to real estate ownership. The company was founded by Benjamin S. Butcher on July 21, 2010 and is headquartered in Boston, MA.