Analyzing NETSTREIT (NYSE:NTST) and First Industrial Realty Trust (NYSE:FR)

NETSTREIT (NYSE:NTST) and First Industrial Realty Trust (NYSE:FR) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.

Valuation and Earnings

This table compares NETSTREIT and First Industrial Realty Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NETSTREIT	$181.38 million	10.81	-$11.94 million	$0.09	224.50
First Industrial Realty Trust	$727.08 million	10.73	$247.44 million	$1.86	31.64

First Industrial Realty Trust has higher revenue and earnings than NETSTREIT. First Industrial 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.

Institutional and Insider Ownership

99.9% of First Industrial Realty Trust shares are owned by institutional investors. 0.6% of NETSTREIT shares are owned by insiders. Comparatively, 1.1% of First Industrial Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NETSTREIT	3.54%	0.51%	0.29%
First Industrial Realty Trust	34.03%	9.02%	4.48%

Analyst Ratings

This is a summary of current recommendations for NETSTREIT and First Industrial Realty Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NETSTREIT	0	2	9	1	2.92
First Industrial Realty Trust	0	5	8	0	2.62

NETSTREIT presently has a consensus price target of $20.45, suggesting a potential upside of 1.24%. First Industrial Realty Trust has a consensus price target of $63.07, suggesting a potential upside of 7.17%. Given First Industrial Realty Trust’s higher possible upside, analysts clearly believe First Industrial Realty Trust is more favorable than NETSTREIT.

Dividends

NETSTREIT pays an annual dividend of $0.88 per share and has a dividend yield of 4.4%. First Industrial Realty Trust pays an annual dividend of $1.78 per share and has a dividend yield of 3.0%. NETSTREIT pays out 977.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First Industrial Realty Trust pays out 95.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NETSTREIT has raised its dividend for 1 consecutive years and First Industrial Realty Trust has raised its dividend for 12 consecutive years.

Volatility and Risk

NETSTREIT has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, First Industrial Realty Trust has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500.

Summary

First Industrial Realty Trust beats NETSTREIT on 12 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 First Industrial Realty Trust

First Industrial Realty Trust, Inc. (NYSE: FR) is a leading U.S.-only owner, operator, developer and acquirer of logistics properties. Through our fully integrated operating and investing platform, we provide high quality facilities and industry-leading customer service to multinational corporations and regional firms that are essential for their supply chains. Our portfolio and new investments are concentrated in 15 target MSAs with an emphasis on supply-constrained, coastally oriented markets. In total, we own and have under development approximately 68.5 million square feet of industrial space as of December 31, 2023.