Contrasting Empire State Realty OP (NYSE:ESBA) and Postal Realty Trust (NYSE:PSTL)

Postal Realty Trust (NYSE:PSTL) and Empire State Realty OP (NYSE:ESBA) are both real estate companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.

Profitability

This table compares Postal Realty Trust and Empire State Realty OP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Postal Realty Trust	15.84%	4.53%	2.14%
Empire State Realty OP	N/A	N/A	N/A

Institutional and Insider Ownership

57.9% of Postal Realty Trust shares are held by institutional investors. 12.5% of Postal Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Postal Realty Trust and Empire State Realty OP, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Postal Realty Trust	0	1	6	1	3.00
Empire State Realty OP	0	0	0	0	0.00

Postal Realty Trust currently has a consensus price target of $23.38, suggesting a potential upside of 1.13%. Given Postal Realty Trust’s stronger consensus rating and higher possible upside, research analysts plainly believe Postal Realty Trust is more favorable than Empire State Realty OP.

Earnings & Valuation

This table compares Postal Realty Trust and Empire State Realty OP”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Postal Realty Trust	$95.82 million	6.66	$14.15 million	$0.51	45.32
Empire State Realty OP	N/A	N/A	N/A	N/A	N/A

Postal Realty Trust has higher revenue and earnings than Empire State Realty OP.

Dividends

Postal Realty Trust pays an annual dividend of $0.98 per share and has a dividend yield of 4.2%. Empire State Realty OP pays an annual dividend of $0.14 per share and has a dividend yield of 2.8%. Postal Realty Trust pays out 192.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Postal Realty Trust has raised its dividend for 3 consecutive years. Postal Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Postal Realty Trust beats Empire State Realty OP on 12 of the 13 factors compared between the two stocks.

About Postal Realty Trust

Postal Realty Trust, Inc. (NYSE: PSTL) is an internally managed real estate investment trust that owns properties primarily leased to the United States Postal Service ("USPS"). PSTL is focused on acquiring the network of USPS properties, which provide a critical element of the nation's logistics infrastructure that facilitates cost effective and efficient last-mile delivery solutions. As of December 31, 2023, PSTL owned 1,509 properties (including two properties accounted for as financing leases) located in 49 states and one territory comprising approximately 5.9 million net leasable interior square feet. Subsequent to quarter-end and through February 23, 2024, PSTL closed on eight additional properties comprising approximately 33,000 net leasable interior square feet.

About Empire State Realty OP

Empire State Realty OP, L.P. operates as a subsidiary of Empire State Realty Trust, Inc.