Alexander’s (NYSE:ALX – Get Free Report) and HG (OTCMKTS:STLY – Get Free Report) are both small-cap real estate companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Alexander’s and HG, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alexander’s | 1 | 0 | 1 | 1 | 2.67 |
| HG | 0 | 0 | 0 | 0 | 0.00 |
Alexander’s presently has a consensus price target of $212.00, suggesting a potential downside of 20.71%. Given Alexander’s’ stronger consensus rating and higher probable upside, equities analysts clearly believe Alexander’s is more favorable than HG.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alexander’s | $213.18 million | 6.41 | $28.22 million | $33.05 | 8.09 |
| HG | $14.74 million | 1.11 | $1.53 million | $0.36 | 9.03 |
Alexander’s has higher revenue and earnings than HG. Alexander’s is trading at a lower price-to-earnings ratio than HG, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Alexander’s and HG’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% |
| HG | 14.15% | 5.46% | 4.29% |
Institutional and Insider Ownership
32.0% of Alexander’s shares are owned by institutional investors. Comparatively, 1.7% of HG shares are owned by institutional investors. 26.4% of Alexander’s shares are owned by company insiders. Comparatively, 75.7% of HG shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
Alexander’s has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, HG has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500.
Summary
Alexander’s beats HG on 13 of the 15 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 HG
HG Holdings, Inc. engages in the title insurance and real estate businesses in the United States. It operates through four segments: Title Insurance Services, Reinsurance, Management Services, and Real Estate. The company provides title insurance, closing and/or escrow, and similar or related services in connection with residential and commercial real estate transactions. It also owns and operates a portfolio of single-tenant properties leased for the occupancy by U.S. government tenant agencies and sub-agencies, such as the Federal Bureau of Investigation, the Department of Veterans affairs, the Drug Enforcement Administration, Immigration & Customs Enforcement, the Social Security Administration, and the Department of Transportation. In addition, the company provides excess-of-loss reinsurance coverage related to catastrophic weather risk in Texas; and management advisory services, such as formation, operational, and restructuring services. The company was formerly known as Stanley Furniture Company, Inc. and changed its name to HG Holdings, Inc. in March 2018. HG Holdings, Inc. was incorporated in 1984 and is headquartered in Charlotte, North Carolina.
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