Contrasting Alexander’s (ALX) & The Competition

Alexander’s (NYSE:ALX) is one of 111 publicly-traded companies in the “Diversified REITs” industry, but how does it compare to its rivals? We will compare Alexander’s to related companies based on the strength of its valuation, earnings, dividends, profitability, institutional ownership, risk and analyst recommendations.

Institutional & Insider Ownership

32.0% of Alexander’s shares are owned by institutional investors. Comparatively, 39.2% of shares of all “Diversified REITs” companies are owned by institutional investors. 26.4% of Alexander’s shares are owned by insiders. Comparatively, 12.4% of shares of all “Diversified REITs” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Alexander’s and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Alexander’s	$213.18 million	$28.22 million	6.67
Alexander’s Competitors	$198.11 million	$18.17 million	6.13

Alexander’s has higher revenue and earnings than its rivals. Alexander’s is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alexander’s	81.93%	117.44%	16.60%
Alexander’s Competitors	-33.55%	-4.08%	1.01%

Dividends

Alexander’s pays an annual dividend of $18.00 per share and has a dividend yield of 7.3%. Alexander’s pays out 48.4% of its earnings in the form of a dividend. As a group, “Diversified REITs” companies pay a dividend yield of 6.8% and pay out -1,298.3% of their earnings in the form of a dividend. Alexander’s has raised its dividend for 1 consecutive years.

Volatility & Risk

Alexander’s has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, Alexander’s’ rivals have a beta of 1.44, meaning that their average stock price is 44% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Alexander’s and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alexander’s	1	1	1	0	2.00
Alexander’s Competitors	495	2474	1972	23	2.31

Alexander’s currently has a consensus target price of $192.00, indicating a potential downside of 22.65%. As a group, “Diversified REITs” companies have a potential upside of 13.64%. Given Alexander’s’ rivals stronger consensus rating and higher possible upside, analysts clearly believe Alexander’s has less favorable growth aspects than its rivals.

Summary

Alexander’s beats its rivals on 8 of the 15 factors compared.

About Alexander’s

Alexander’s, Inc. is a real estate investment trust (REIT) that owns and leases commercial properties, primarily in the New York City area. Its portfolio includes office, retail and mixed-use real estate, with properties in Manhattan and Queens. The company’s properties include 731 Lexington Avenue, a mixed-use office and retail building in Manhattan, and the Rego Center shopping complex in Queens. Alexander’s focuses on leasing space to businesses and retailers rather than operating a department store chain.