Contrasting NETSTREIT (NYSE:NTST) & Acadia Realty Trust (NYSE:AKR)

NETSTREIT (NYSE:NTST) and Acadia Realty Trust (NYSE:AKR) are both mid-cap real estate companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Profitability

This table compares NETSTREIT and Acadia Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NETSTREIT	9.18%	1.33%	0.74%
Acadia Realty Trust	12.14%	1.85%	1.04%

Risk & Volatility

NETSTREIT has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, Acadia Realty Trust has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Valuation and Earnings

This table compares NETSTREIT and Acadia Realty Trust”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NETSTREIT	$195.01 million	11.15	$6.90 million	$0.22	78.70
Acadia Realty Trust	$410.76 million	6.28	$16.90 million	$0.34	55.22

Acadia Realty Trust has higher revenue and earnings than NETSTREIT. Acadia Realty Trust is trading at a lower price-to-earnings ratio than NETSTREIT, indicating that it is currently the more affordable of the two stocks.

Dividends

NETSTREIT pays an annual dividend of $0.90 per share and has a dividend yield of 5.2%. Acadia Realty Trust pays an annual dividend of $0.80 per share and has a dividend yield of 4.3%. NETSTREIT pays out 409.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Acadia Realty Trust pays out 235.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NETSTREIT has raised its dividend for 1 consecutive years and Acadia Realty Trust has raised its dividend for 2 consecutive years.

Analyst Recommendations

This is a summary of current ratings and target prices for NETSTREIT and Acadia Realty Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NETSTREIT	0	1	13	0	2.93
Acadia Realty Trust	0	3	4	1	2.75

NETSTREIT presently has a consensus target price of $21.94, suggesting a potential upside of 26.70%. Acadia Realty Trust has a consensus target price of $23.80, suggesting a potential upside of 26.76%. Given Acadia Realty Trust’s higher probable upside, analysts clearly believe Acadia Realty Trust is more favorable than NETSTREIT.

Institutional and Insider Ownership

97.7% of Acadia Realty Trust shares are owned by institutional investors. 0.7% of NETSTREIT shares are owned by insiders. Comparatively, 3.1% of Acadia Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Acadia Realty Trust beats NETSTREIT on 13 of the 18 factors compared between the two stocks.

About NETSTREIT

NETSTREIT Corp. is an internally managed real estate investment trust (REIT) based in Dallas, Texas that specializes in acquiring single-tenant net lease retail properties nationwide. The growing portfolio consists of high-quality properties leased to e-commerce resistant tenants with healthy balance sheets. Led by a management team of seasoned commercial real estate executives, NETSTREIT’s strategy is to create the highest quality net lease retail portfolio in the country with the goal of generating consistent cash flows and dividends for its investors.

About Acadia Realty Trust

Acadia Realty Trust is an equity real estate investment trust focused on delivering long-term, profitable growth via its dual Core Portfolio and Fund operating platforms and its disciplined, location-driven investment strategy. Acadia Realty Trust is accomplishing this goal by building a best-in-class core real estate portfolio with meaningful concentrations of assets in the nation's most dynamic corridors; making profitable opportunistic and value-add investments through its series of discretionary, institutional funds; and maintaining a strong balance sheet.