Terreno Realty (NYSE:TRNO – Get Free Report) and LXP Industrial Trust (NYSE:LXP – Get Free Report) are both mid-cap 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.
Dividends
Terreno Realty pays an annual dividend of $2.28 per share and has a dividend yield of 3.5%. LXP Industrial Trust pays an annual dividend of $2.80 per share and has a dividend yield of 4.6%. Terreno Realty pays out 61.1% of its earnings in the form of a dividend. LXP Industrial Trust pays out 280.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Terreno Realty has increased its dividend for 5 consecutive years and LXP Industrial Trust has increased its dividend for 3 consecutive years.
Insider & Institutional Ownership
93.5% of LXP Industrial Trust shares are owned by institutional investors. 1.9% of Terreno Realty shares are owned by insiders. Comparatively, 2.8% of LXP Industrial Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Terreno Realty and LXP Industrial Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Terreno Realty | 77.22% | 9.21% | 7.07% |
| LXP Industrial Trust | 34.31% | 6.29% | 3.45% |
Analyst Recommendations
This is a summary of recent ratings and target prices for Terreno Realty and LXP Industrial Trust, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Terreno Realty | 2 | 2 | 9 | 1 | 2.64 |
| LXP Industrial Trust | 0 | 5 | 3 | 0 | 2.38 |
Terreno Realty presently has a consensus target price of $73.47, suggesting a potential upside of 11.84%. LXP Industrial Trust has a consensus target price of $57.40, suggesting a potential downside of 6.16%. Given Terreno Realty’s stronger consensus rating and higher probable upside, analysts plainly believe Terreno Realty is more favorable than LXP Industrial Trust.
Volatility and Risk
Terreno Realty has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, LXP Industrial Trust has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.
Earnings & Valuation
This table compares Terreno Realty and LXP Industrial Trust”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Terreno Realty | $502.88 million | 14.23 | $402.99 million | $3.73 | 17.61 |
| LXP Industrial Trust | $350.23 million | 10.30 | $113.16 million | $1.00 | 61.16 |
Terreno Realty has higher revenue and earnings than LXP Industrial Trust. Terreno Realty is trading at a lower price-to-earnings ratio than LXP Industrial Trust, indicating that it is currently the more affordable of the two stocks.
Summary
Terreno Realty beats LXP Industrial Trust on 14 of the 18 factors compared between the two stocks.
About Terreno Realty
Terreno Realty Corporation (Terreno, and together with its subsidiaries, the Company) acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. All square feet, acres, occupancy and number of properties disclosed in these notes to the consolidated financial statements are unaudited. As of December 31, 2023, the Company owned 259 buildings aggregating approximately 16.0 million square feet, 45 improved land parcels consisting of approximately 152.4 acres, seven properties under development or redevelopment and approximately 62.7 acres of land entitled for future development. The Company is an internally managed Maryland corporation and elected to be taxed as a real estate investment trust (REIT) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the Code), commencing with its taxable year ended December 31, 2010.
About LXP Industrial Trust
LXP Industrial Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) focused on single-tenant industrial real estate investments across the United States. LXP seeks to expand its industrial portfolio through acquisitions, build-to-suit transactions, sale-leaseback transactions, development projects and other transactions.
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