Financial Survey: Postal Realty Trust (PSTL) versus Its Rivals

Postal Realty Trust (NYSE:PSTL) is one of 59 public companies in the “Office REITs” industry, but how does it compare to its rivals? We will compare Postal Realty Trust to related businesses based on the strength of its risk, profitability, earnings, institutional ownership, analyst recommendations, dividends and valuation.

Valuation & Earnings

This table compares Postal Realty Trust and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Postal Realty Trust	$95.82 million	$14.15 million	39.87
Postal Realty Trust Competitors	$535.05 million	-$49.56 million	63.59

Postal Realty Trust’s rivals have higher revenue, but lower earnings than Postal Realty Trust. Postal Realty Trust is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

57.9% of Postal Realty Trust shares are owned by institutional investors. Comparatively, 61.4% of shares of all “Office REITs” companies are owned by institutional investors. 12.5% of Postal Realty Trust shares are owned by company insiders. Comparatively, 8.7% of shares of all “Office REITs” companies are owned by company 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.

Profitability

This table compares Postal Realty Trust and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Postal Realty Trust	16.42%	4.63%	2.22%
Postal Realty Trust Competitors	-17.63%	-7.43%	-0.22%

Risk & Volatility

Postal Realty Trust has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500. Comparatively, Postal Realty Trust’s rivals have a beta of 1.05, indicating that their average stock price is 5% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Postal Realty Trust and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Postal Realty Trust	0	2	6	0	2.75
Postal Realty Trust Competitors	943	2827	2689	25	2.28

Postal Realty Trust currently has a consensus target price of $25.38, indicating a potential upside of 17.86%. As a group, “Office REITs” companies have a potential upside of 5.67%. Given Postal Realty Trust’s stronger consensus rating and higher probable upside, research analysts plainly believe Postal Realty Trust is more favorable than its rivals.

Dividends

Postal Realty Trust pays an annual dividend of $0.98 per share and has a dividend yield of 4.6%. Postal Realty Trust pays out 181.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Office REITs” companies pay a dividend yield of 5.0% and pay out -389.4% of their earnings in the form of a dividend. Postal Realty Trust has increased its dividend for 3 consecutive years. Postal Realty Trust lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Postal Realty Trust beats its rivals on 8 of the 15 factors compared.

Postal Realty Trust Company Profile

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.