Critical Comparison: Rexford Industrial Realty (NYSE:REXR) and InvenTrust Properties (NYSE:IVT)

Rexford Industrial Realty (NYSE:REXR) and InvenTrust Properties (NYSE:IVT) are both mid-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.

Valuation & Earnings

This table compares Rexford Industrial Realty and InvenTrust Properties”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rexford Industrial Realty	$1.00 billion	7.70	$212.03 million	$0.93	36.77
InvenTrust Properties	$299.17 million	9.43	$111.42 million	$1.41	25.67

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

Profitability

This table compares Rexford Industrial Realty and InvenTrust Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rexford Industrial Realty	23.25%	2.64%	1.82%
InvenTrust Properties	35.66%	6.10%	3.95%

Insider and Institutional Ownership

99.5% of Rexford Industrial Realty shares are held by institutional investors. Comparatively, 61.7% of InvenTrust Properties shares are held by institutional investors. 1.8% of Rexford Industrial Realty shares are held by company insiders. Comparatively, 0.7% of InvenTrust Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Rexford Industrial Realty pays an annual dividend of $1.74 per share and has a dividend yield of 5.1%. InvenTrust Properties pays an annual dividend of $1.00 per share and has a dividend yield of 2.8%. Rexford Industrial Realty pays out 187.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. InvenTrust Properties pays out 70.9% of its earnings in the form of a dividend. Rexford Industrial Realty has raised its dividend for 4 consecutive years and InvenTrust Properties has raised its dividend for 4 consecutive years.

Risk and Volatility

Rexford Industrial Realty has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, InvenTrust Properties has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Rexford Industrial Realty and InvenTrust Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rexford Industrial Realty	3	6	5	0	2.14
InvenTrust Properties	0	1	4	2	3.14

Rexford Industrial Realty currently has a consensus price target of $40.62, indicating a potential upside of 18.76%. InvenTrust Properties has a consensus price target of $34.57, indicating a potential downside of 4.50%. Given Rexford Industrial Realty’s higher probable upside, equities research analysts plainly believe Rexford Industrial Realty is more favorable than InvenTrust Properties.

Summary

Rexford Industrial Realty beats InvenTrust Properties on 9 of the 17 factors compared between the two stocks.

About Rexford Industrial Realty

Rexford Industrial Realty, Inc. is a self-administered and self-managed real estate investment trust, which engages in owning and operating industrial properties in infill markets. The company was founded by Richard S. Ziman on January 18, 2013 and is headquartered in Los Angeles, CA.

About InvenTrust Properties

InvenTrust Properties Corp. (the “Company,” “IVT,” or “InvenTrust”) is a premier Sun Belt, multi-tenant essential retail REIT that owns, leases, redevelops, acquires and manages grocery-anchored neighborhood and community centers as well as high-quality power centers that often have a grocery component. Management pursues the Company’s business strategy by acquiring retail properties in Sun Belt markets, opportunistically disposing of retail properties, maintaining a flexible capital structure, and enhancing environmental, social and governance (“ESG”) practices and standards. A trusted, local operator bringing real estate expertise to its tenant relationships, IVT has built a strong reputation with market participants across its portfolio. IVT is committed to leadership in ESG practices and has been a Global Real Estate Sustainability Benchmark (“GRESB”) member since 2013.