Alexander’s (NYSE:ALX – Get Free Report) and Net Lease Office Properties (NYSE:NLOP – Get Free Report) are both small-cap real estate companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.
Risk & Volatility
Alexander’s has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, Net Lease Office Properties has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.
Earnings & Valuation
This table compares Alexander’s and Net Lease Office Properties”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alexander’s | $214.80 million | 5.79 | $28.22 million | $33.05 | 7.37 |
| Net Lease Office Properties | $118.92 million | 1.21 | -$145.26 million | ($3.06) | -3.18 |
Alexander’s has higher revenue and earnings than Net Lease Office Properties. Net Lease Office Properties is trading at a lower price-to-earnings ratio than Alexander’s, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Alexander’s and Net Lease Office Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alexander’s | 79.06% | 123.09% | 14.43% |
| Net Lease Office Properties | -59.82% | -16.92% | -12.66% |
Institutional & Insider Ownership
32.0% of Alexander’s shares are held by institutional investors. Comparatively, 58.3% of Net Lease Office Properties shares are held by institutional investors. 26.4% of Alexander’s shares are held by insiders. Comparatively, 0.7% of Net Lease Office Properties shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Alexander’s and Net Lease Office Properties, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alexander’s | 1 | 1 | 1 | 0 | 2.00 |
| Net Lease Office Properties | 1 | 0 | 0 | 0 | 1.00 |
Alexander’s presently has a consensus price target of $212.00, suggesting a potential downside of 13.00%. Given Alexander’s’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Alexander’s is more favorable than Net Lease Office Properties.
Summary
Alexander’s beats Net Lease Office Properties on 13 of the 14 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 Net Lease Office Properties
Net Lease Office Properties (NYSE: NLOP) is a publicly traded real estate investment trust with a portfolio of 59 high-quality office properties, totaling approximately 8.7 million leasable square feet primarily leased to corporate tenants on a single-tenant net lease basis. The vast majority of the office properties owned by NLOP are located in the U.S., with the balance in Europe. The portfolio consists of 62 corporate tenants operating in a variety of industries, generating annualized based rent (ABR) of approximately $145 million. NLOP's business plan is to focus on realizing value for its shareholders primarily through strategic asset management and disposition of its property portfolio over time. Given WPC's extensive knowledge of the portfolio, NLOP is externally managed and advised by wholly owned affiliates of WPC to successfully execute on its business strategy. Over the course of its 50-year history, WPC has developed significant expertise in the single-tenant office real estate sector, including the operation, leasing, acquisition and development of assets through many market cycles, and has a proven track record of execution.
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