Rexford Industrial Realty (NYSE: REXR) and Gramercy Property Trust (NYSE:GPT) are both mid-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, dividends, risk, profitability and earnings.

Dividends

Rexford Industrial Realty pays an annual dividend of $0.58 per share and has a dividend yield of 1.9%. Gramercy Property Trust pays an annual dividend of $1.50 per share and has a dividend yield of 5.2%. Rexford Industrial Realty pays out 134.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Gramercy Property Trust pays out 340.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rexford Industrial Realty has raised its dividend for 2 consecutive years.

Volatility and Risk

Rexford Industrial Realty has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, Gramercy Property Trust has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500.

Earnings & Valuation

This table compares Rexford Industrial Realty and Gramercy Property Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Rexford Industrial Realty $125.26 million 18.79 $25.12 million $0.43 70.26
Gramercy Property Trust $517.26 million 9.03 $33.35 million $0.44 66.07

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

Insider and Institutional Ownership

99.3% of Rexford Industrial Realty shares are owned by institutional investors. Comparatively, 87.2% of Gramercy Property Trust shares are owned by institutional investors. 2.1% of Rexford Industrial Realty shares are owned by insiders. Comparatively, 1.0% of Gramercy Property Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Rexford Industrial Realty and Gramercy Property Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rexford Industrial Realty 23.50% 3.39% 1.97%
Gramercy Property Trust 14.10% 2.60% 1.25%

Analyst Ratings

This is a summary of current ratings and price targets for Rexford Industrial Realty and Gramercy Property Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rexford Industrial Realty 0 4 1 0 2.20
Gramercy Property Trust 1 2 3 0 2.33

Rexford Industrial Realty presently has a consensus price target of $23.75, indicating a potential downside of 21.38%. Gramercy Property Trust has a consensus price target of $31.25, indicating a potential upside of 7.50%. Given Gramercy Property Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Gramercy Property Trust is more favorable than Rexford Industrial Realty.

Summary

Rexford Industrial Realty beats Gramercy Property Trust on 10 of the 17 factors compared between the two stocks.

About Rexford Industrial Realty

Rexford Industrial Realty, Inc. is a self-administered and self-managed full-service real estate investment trust (REIT). The Company is focused on owning, operating and acquiring industrial properties in Southern California infill markets. Rexford Industrial Realty, L.P. is the operating partnership of the Company. Through its controlling interest in Operating Partnership and its subsidiaries, the Company owns, manages, leases, acquires and develops industrial real estate located in Southern California infill markets, and from time to time, acquires or provides mortgage debt secured by industrial property. As of July 19, 2017, the Company’s consolidated portfolio consisted of 142 properties with approximately 17.7 million rentable square feet. In addition, the Company managed an additional 19 properties with approximately 1.2 million rentable square feet.

About Gramercy Property Trust

Gramercy Property Trust is a real estate investment trust (REIT), which is an investor and asset manager of commercial real estate. The Company’s operating segments include Investments/Corporate and Asset Management. The Investments/Corporate segment includes all of its activities related to the investment and ownership of commercial properties located throughout the United States and Europe. The Asset Management segment includes substantially all of its activities related to asset and property management of commercial properties located throughout the United States and Europe. It is engaged in acquiring and managing single-tenant, net leased industrial, office and specialty properties. It focuses on income producing properties leased to tenants in markets in the United States and Europe. It earns revenues through rental revenues on properties that it owns in the United States and asset management revenues on properties owned by third parties in the United States and Europe.

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