Critical Analysis: Nexus Industrial REIT (OTCMKTS:EFRTF) & Stag Industrial (NYSE:STAG)

Stag Industrial (NYSE:STAGGet Free Report) and Nexus Industrial REIT (OTCMKTS:EFRTFGet Free Report) are both real estate companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

88.7% of Stag Industrial shares are held by institutional investors. 1.1% of Stag Industrial shares are held by company 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 Ratings

This is a breakdown of current ratings and price targets for Stag Industrial and Nexus Industrial REIT, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stag Industrial 1 6 3 0 2.20
Nexus Industrial REIT 0 2 0 0 2.00

Stag Industrial presently has a consensus target price of $50.50, indicating a potential upside of 32.05%. Given Stag Industrial’s stronger consensus rating and higher probable upside, analysts plainly believe Stag Industrial is more favorable than Nexus Industrial REIT.

Profitability

This table compares Stag Industrial and Nexus Industrial REIT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stag Industrial 28.04% 6.79% 3.43%
Nexus Industrial REIT N/A N/A N/A

Valuation & Earnings

This table compares Stag Industrial and Nexus Industrial REIT”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stag Industrial $845.18 million 8.72 $273.52 million $1.30 29.42
Nexus Industrial REIT N/A N/A N/A ($0.20) -29.01

Stag Industrial has higher revenue and earnings than Nexus Industrial REIT. Nexus Industrial REIT is trading at a lower price-to-earnings ratio than Stag Industrial, indicating that it is currently the more affordable of the two stocks.

Summary

Stag Industrial beats Nexus Industrial REIT on 11 of the 11 factors compared between the two stocks.

About Stag Industrial

(Get Free Report)

STAG Industrial, Inc. is a real estate investment company, which engages in acquiring, owning, and managing single-tenant, industrial real estate assets. It offers industrial real estate operating platform to real estate ownership. The company was founded by Benjamin S. Butcher on July 21, 2010 and is headquartered in Boston, MA.

About Nexus Industrial REIT

(Get Free Report)

Nexus Industrial REIT is a growth-oriented real estate investment trust focused on increasing unitholder value through the acquisition of industrial properties located in primary and secondary markets in Canada, and the ownership and management of its portfolio of properties. The REIT currently owns a portfolio of 116 properties (including two properties held for development in which the REIT has an 80% interest) comprising approximately 12.4 million square feet of gross leasable area. The REIT has approximately 93,038,000 voting units issued and outstanding, including approximately 68,427,000 REIT Units and approximately 24,611,000 Class B LP Units of subsidiary limited partnerships of Nexus, which are convertible to REIT Units on a one-to-one basis.

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