Contrasting Alexander’s (NYSE:ALX) & NETSTREIT (NYSE:NTST)

Alexander’s (NYSE:ALX) and NETSTREIT (NYSE:NTST) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.

Risk and Volatility

Alexander’s has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, NETSTREIT has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Alexander’s and NETSTREIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alexander’s	0	2	0	0	2.00
NETSTREIT	0	3	13	0	2.81

NETSTREIT has a consensus target price of $22.52, indicating a potential upside of 10.79%. Given NETSTREIT’s stronger consensus rating and higher possible upside, analysts clearly believe NETSTREIT is more favorable than Alexander’s.

Earnings & Valuation

This table compares Alexander’s and NETSTREIT”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alexander’s	$213.18 million	6.27	$28.22 million	$4.00	65.44
NETSTREIT	$195.01 million	10.14	$6.90 million	$0.13	156.34

Alexander’s has higher revenue and earnings than NETSTREIT. Alexander’s is trading at a lower price-to-earnings ratio than NETSTREIT, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Alexander’s and NETSTREIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alexander’s	9.72%	17.38%	1.71%
NETSTREIT	5.29%	0.78%	0.43%

Dividends

Alexander’s pays an annual dividend of $18.00 per share and has a dividend yield of 6.9%. NETSTREIT pays an annual dividend of $0.88 per share and has a dividend yield of 4.3%. Alexander’s pays out 450.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NETSTREIT pays out 676.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alexander’s has raised its dividend for 1 consecutive years and NETSTREIT has raised its dividend for 1 consecutive years. Alexander’s is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

32.0% of Alexander’s shares are owned by institutional investors. 26.4% of Alexander’s shares are owned by insiders. Comparatively, 0.7% of NETSTREIT shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Alexander’s beats NETSTREIT on 10 of the 16 factors compared between the two stocks.

About Alexander’s

Alexander’s, Inc. (NYSE: ALX) is a real estate investment trust (REIT), incorporated in Delaware, engaged in leasing, managing, developing and redeveloping its properties. All references to we, us, our, Company and Alexander’s refer to Alexander’s, Inc. and its consolidated subsidiaries. We are managed by, and our properties are leased and developed by, Vornado Realty Trust (Vornado) (NYSE: VNO). We have five properties in New York City.

About NETSTREIT

NETSTREIT Corp. is an internally managed real estate investment trust (REIT) based in Dallas, Texas that specializes in acquiring single-tenant net lease retail properties nationwide. The growing portfolio consists of high-quality properties leased to e-commerce resistant tenants with healthy balance sheets. Led by a management team of seasoned commercial real estate executives, NETSTREIT’s strategy is to create the highest quality net lease retail portfolio in the country with the goal of generating consistent cash flows and dividends for its investors.