Head to Head Contrast: Alexander’s (NYSE:ALX) & Net Lease Office Properties (NYSE:NLOP)

Alexander’s (NYSE:ALX) and Net Lease Office Properties (NYSE:NLOP) are both small-cap real estate companies, but which is the better business? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, earnings, risk, valuation and institutional ownership.

Analyst Ratings

This is a summary of current ratings and recommmendations for Alexander’s and Net Lease Office Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alexander’s	1	0	1	1	2.67
Net Lease Office Properties	1	0	0	0	1.00

Alexander’s currently has a consensus target price of $212.00, suggesting a potential downside of 15.00%. Given Alexander’s’ stronger consensus rating and higher probable upside, equities analysts plainly believe Alexander’s is more favorable than Net Lease Office Properties.

Profitability

This table compares Alexander’s and Net Lease Office Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alexander’s	79.06%	123.09%	14.43%
Net Lease Office Properties	-59.82%	-16.92%	-12.66%

Insider & Institutional Ownership

32.0% of Alexander’s shares are owned by institutional investors. Comparatively, 58.3% of Net Lease Office Properties shares are owned by institutional investors. 26.4% of Alexander’s shares are owned by insiders. Comparatively, 0.7% of Net Lease Office Properties shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Alexander’s has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Net Lease Office Properties has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500.

Valuation & Earnings

This table compares Alexander’s and Net Lease Office Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alexander’s	$213.18 million	5.98	$28.22 million	$33.05	7.55
Net Lease Office Properties	$118.92 million	1.35	-$145.26 million	($3.06)	-3.54

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

Summary

Alexander’s beats Net Lease Office Properties on 14 of the 15 factors compared between the two stocks.

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.

About Net Lease Office Properties

Net Lease Office Properties (NYSE: NLOP) is a publicly traded real estate investment trust with a portfolio of 59 high-quality office properties, totaling approximately 8.7 million leasable square feet primarily leased to corporate tenants on a single-tenant net lease basis. The vast majority of the office properties owned by NLOP are located in the U.S., with the balance in Europe. The portfolio consists of 62 corporate tenants operating in a variety of industries, generating annualized based rent (ABR) of approximately $145 million. NLOP's business plan is to focus on realizing value for its shareholders primarily through strategic asset management and disposition of its property portfolio over time. Given WPC's extensive knowledge of the portfolio, NLOP is externally managed and advised by wholly owned affiliates of WPC to successfully execute on its business strategy. Over the course of its 50-year history, WPC has developed significant expertise in the single-tenant office real estate sector, including the operation, leasing, acquisition and development of assets through many market cycles, and has a proven track record of execution.