Critical Survey: Alexander’s (NYSE:ALX) versus Gyrodyne (NASDAQ:GYRO)

Gyrodyne (NASDAQ:GYRO) and Alexander’s (NYSE:ALX) are both small-cap real estate companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gyrodyne	N/A	N/A	N/A	N/A	N/A
Alexander’s	$213.18 million	6.49	$28.22 million	$33.05	8.19

Alexander’s has higher revenue and earnings than Gyrodyne .

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Gyrodyne and Alexander’s, as provided by MarketBeat.com.

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

Alexander’s has a consensus price target of $212.00, suggesting a potential downside of 21.70%. Given Alexander’s’ stronger consensus rating and higher probable upside, analysts plainly believe Alexander’s is more favorable than Gyrodyne .

Volatility and Risk

Gyrodyne has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, Alexander’s has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500.

Profitability

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

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

Insider and Institutional Ownership

71.4% of Gyrodyne shares are owned by institutional investors. Comparatively, 32.0% of Alexander’s shares are owned by institutional investors. 12.1% of Gyrodyne shares are owned by insiders. Comparatively, 26.4% of Alexander’s shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Alexander’s beats Gyrodyne on 10 of the 11 factors compared between the two stocks.

About Gyrodyne

Gyrodyne, LLC owns and manages a diversified portfolio of real estate properties comprising office, industrial and service-oriented properties in the New York metropolitan area. Gyrodyne owns a 63 acre site approximately 50 miles east of New York City on the north shore of Long Island, which includes industrial and office buildings and undeveloped property which is the subject of plans to seek value-enhancing entitlements. Gyrodyne also owns a medical office park in Cortlandt Manor, New York which is also the subject of a subdivision application. Gyrodyne's common shares are traded on the NASDAQ Stock Market under the symbol GYRO.

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.