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

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

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%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alexander’s	$213.18 million	5.84	$28.22 million	$33.05	7.37
Net Lease Office Properties	$118.92 million	1.21	-$145.26 million	($3.06)	-3.18

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.

Institutional & Insider Ownership

32.0% of Alexander’s shares are held by institutional investors. Comparatively, 58.3% of Net Lease Office Properties shares are held by institutional investors. 26.4% of Alexander’s shares are held by company insiders. Comparatively, 0.7% of Net Lease Office Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Alexander’s has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, Net Lease Office Properties has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Alexander’s and Net Lease Office Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alexander’s	1	1	1	0	2.00
Net Lease Office Properties	1	0	0	0	1.00

Alexander’s currently has a consensus target price of $212.00, indicating a potential downside of 13.00%. Given Alexander’s’ stronger consensus rating and higher possible upside, analysts plainly believe Alexander’s is more favorable than Net Lease Office Properties.

Summary

Alexander’s beats Net Lease Office Properties on 13 of the 14 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.