Critical Comparison: Alexander’s (NYSE:ALX) & Stockland (OTCMKTS:STKAF)

Stockland (OTCMKTS:STKAF) and Alexander’s (NYSE:ALX) are both real estate companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Valuation & Earnings

This table compares Stockland and Alexander’s”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stockland	N/A	N/A	N/A	$0.23	13.66
Alexander’s	$213.18 million	6.45	$28.22 million	$33.05	8.14

Alexander’s has higher revenue and earnings than Stockland. Alexander’s is trading at a lower price-to-earnings ratio than Stockland, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Stockland and Alexander’s, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stockland	0	0	0	0	0.00
Alexander’s	1	0	1	1	2.67

Alexander’s has a consensus target price of $212.00, indicating a potential downside of 21.19%. Given Alexander’s’ stronger consensus rating and higher possible upside, analysts clearly believe Alexander’s is more favorable than Stockland.

Dividends

Stockland pays an annual dividend of $0.24 per share and has a dividend yield of 7.7%. Alexander’s pays an annual dividend of $18.00 per share and has a dividend yield of 6.7%. Stockland pays out 105.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alexander’s pays out 54.5% of its earnings in the form of a dividend. Alexander’s has increased its dividend for 1 consecutive years.

Institutional & Insider Ownership

38.4% of Stockland shares are held by institutional investors. Comparatively, 32.0% of Alexander’s shares are held by institutional investors. 26.4% of Alexander’s shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Stockland and Alexander’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stockland	N/A	N/A	N/A
Alexander’s	79.06%	123.09%	14.43%

Summary

Alexander’s beats Stockland on 12 of the 15 factors compared between the two stocks.

About Stockland

We are a leading creator and curator of connected communities with people at the heart of the places we create. For more than 70 years, we have built a proud legacy, helping more Australians achieve the dream of home ownership, and enabling the future of work and retail. Today, we continue to build on our history as one of Australia's largest diversified property groups to elevate the social value of our places, and create a tangible sense of human connection, belonging and community for our customers. We own, fund, develop and manage one of Australia's largest portfolios of residential and land lease communities, retail town centres, and workplace and logistics assets. Our approach is distinctive, bringing a unique combination of development expertise, scale, deep customer insight, and diverse talent – with care in everything we do. We are committed to contributing to the economic prosperity of Australia and the wellbeing of our communities and our planet.

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.