Excel Trust (NYSE: EXL) and Select Income REIT (NASDAQ:SIR) are both financials companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.

Dividends

Select Income REIT pays an annual dividend of $2.04 per share and has a dividend yield of 8.5%. Excel Trust does not pay a dividend. Select Income REIT pays out 210.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Select Income REIT has increased its dividend for 7 consecutive years.

Profitability

This table compares Excel Trust and Select Income REIT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Excel Trust 9.45% 0.65% 0.88%
Select Income REIT 18.65% 4.18% 1.85%

Earnings and Valuation

This table compares Excel Trust and Select Income REIT’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Excel Trust N/A N/A N/A N/A N/A
Select Income REIT N/A N/A N/A $0.97 24.64

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Excel Trust and Select Income REIT, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Excel Trust 0 0 0 0 N/A
Select Income REIT 0 0 1 0 3.00

Select Income REIT has a consensus price target of $34.00, suggesting a potential upside of 42.26%. Given Select Income REIT’s higher probable upside, analysts clearly believe Select Income REIT is more favorable than Excel Trust.

Insider and Institutional Ownership

48.2% of Select Income REIT shares are owned by institutional investors. 2.0% of Select Income REIT shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Select Income REIT beats Excel Trust on 9 of the 10 factors compared between the two stocks.

About Excel Trust

Excel Trust, Inc. is a real estate investment trust (REIT). The Company is a vertically integrated, self-administered, self-managed real estate firm with the principal objective of acquiring, financing, developing, leasing, owning and managing community and power centers, grocery anchored neighborhood centers and freestanding retail properties. It operates through three segments: retail properties, multi-family properties and office properties. It owns approximately 38 consolidated retail operating properties with a total of approximately 7.2 million square feet of gross leasable area (GLA). The multi-family segment consists of apartment units at one retail property, West Broad Village, which is located in Richmond, Virginia. The office segment consists of two properties, Excel Centre, a portion of which is utilized as its headquarters, and the Promenade Corporate Center. These office properties total approximately 338,339 square feet of GLA.

About Select Income REIT

Select Income REIT is a real estate investment trust. The Company is engaged in the ownership of properties that include buildings and leased industrial lands that are primarily net leased to single tenants. As of December 31, 2016, the Company owned 121 properties (362 buildings, leasable land parcels and easements) with approximately 44.8 million rentable square feet. As of December 31, 2016, the Company’s properties consisted of 110 office and industrial properties (133 buildings) with approximately 27.0 million square feet located in 34 states throughout the mainland United States (Mainland Properties), and 11 properties (229 buildings, leasable land parcels and easements) located on the island of Oahu, Hawaii, with approximately 17.8 million rentable square feet that are primarily leased to industrial and commercial tenants (Hawaii Properties). As of December 31, 2016, the Company’s properties were leased to 312 different tenants.

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