Alexander’s (NYSE:ALX – Get Free Report) and Broadstone Net Lease (NYSE:BNL – Get Free Report) are both real estate companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.
Dividends
Alexander’s pays an annual dividend of $18.00 per share and has a dividend yield of 6.6%. Broadstone Net Lease pays an annual dividend of $1.17 per share and has a dividend yield of 5.6%. Alexander’s pays out 54.5% of its earnings in the form of a dividend. Broadstone Net Lease pays out 153.9% 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 Broadstone Net Lease has raised its dividend for 4 consecutive years. Alexander’s is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional and Insider Ownership
32.0% of Alexander’s shares are owned by institutional investors. Comparatively, 89.1% of Broadstone Net Lease shares are owned by institutional investors. 26.4% of Alexander’s shares are owned by insiders. Comparatively, 1.0% of Broadstone Net Lease 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.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alexander’s | $213.18 million | 6.56 | $28.22 million | $33.05 | 8.28 |
| Broadstone Net Lease | $454.14 million | 8.89 | $96.50 million | $0.76 | 27.70 |
Broadstone Net Lease has higher revenue and earnings than Alexander’s. Alexander’s is trading at a lower price-to-earnings ratio than Broadstone Net Lease, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Alexander’s and Broadstone Net Lease, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alexander’s | 1 | 0 | 1 | 1 | 2.67 |
| Broadstone Net Lease | 0 | 4 | 7 | 0 | 2.64 |
Alexander’s currently has a consensus target price of $212.00, indicating a potential downside of 22.52%. Broadstone Net Lease has a consensus target price of $22.78, indicating a potential upside of 8.21%. Given Broadstone Net Lease’s higher possible upside, analysts clearly believe Broadstone Net Lease is more favorable than Alexander’s.
Profitability
This table compares Alexander’s and Broadstone Net Lease’s 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% |
| Broadstone Net Lease | 30.61% | 4.83% | 2.54% |
Volatility and Risk
Alexander’s has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, Broadstone Net Lease has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500.
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 Broadstone Net Lease
Broadstone Net Lease, Inc. (the Corporation) is a Maryland corporation formed on October 18, 2007, that elected to be taxed as a real estate investment trust (REIT) commencing with the taxable year ended December 31, 2008. Broadstone Net Lease, LLC (the Corporation’s operating company, or the OP), is the entity through which the Corporation conducts its business and owns (either directly or through subsidiaries) all of the Corporation’s properties. The Corporation is the sole managing member of the OP. The membership units not owned by the Corporation are referred to as OP Units or non-controlling interests. As the Corporation conducts substantially all of its operations through the OP, it is structured as what is referred to as an umbrella partnership real estate investment trust (UPREIT). The Corporation’s common stock is listed on the New York Stock Exchange under the symbol BNL.
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