Critical Contrast: FrontView REIT (NYSE:FVR) & Rexford Industrial Realty (NYSE:REXR)

Rexford Industrial Realty (NYSE:REXR) and FrontView REIT (NYSE:FVR) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.

Dividends

Rexford Industrial Realty pays an annual dividend of $1.74 per share and has a dividend yield of 5.2%. FrontView REIT pays an annual dividend of $0.86 per share and has a dividend yield of 4.4%. 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. FrontView REIT pays out -537.5% of its earnings in the form of a dividend. Rexford Industrial Realty has raised its dividend for 4 consecutive years. Rexford Industrial Realty is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent ratings for Rexford Industrial Realty and FrontView REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rexford Industrial Realty	3	6	5	0	2.14
FrontView REIT	1	3	4	2	2.70

Rexford Industrial Realty presently has a consensus price target of $40.62, suggesting a potential upside of 22.52%. FrontView REIT has a consensus price target of $19.19, suggesting a potential downside of 1.75%. Given Rexford Industrial Realty’s higher possible upside, research analysts clearly believe Rexford Industrial Realty is more favorable than FrontView REIT.

Insider and Institutional Ownership

99.5% of Rexford Industrial Realty shares are owned by institutional investors. 1.8% of Rexford Industrial Realty shares are owned by insiders. Comparatively, 9.6% of FrontView REIT shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Rexford Industrial Realty and FrontView REIT’s 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%
FrontView REIT	-3.88%	-0.53%	-0.31%

Risk and Volatility

Rexford Industrial Realty has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, FrontView REIT has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.

Earnings and Valuation

This table compares Rexford Industrial Realty and FrontView REIT”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rexford Industrial Realty	$1.00 billion	7.46	$212.03 million	$0.93	35.65
FrontView REIT	$67.11 million	6.59	-$3.83 million	($0.16)	-122.06

Rexford Industrial Realty has higher revenue and earnings than FrontView REIT. FrontView REIT 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.

Summary

Rexford Industrial Realty beats FrontView REIT on 13 of the 18 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 FrontView REIT

FrontView REIT specializes in real estate investing.