Financial Contrast: Postal Realty Trust (PSTL) & Its Peers

Postal Realty Trust (NYSE:PSTL) is one of 59 public companies in the “Office REITs” industry, but how does it weigh in compared to its rivals? We will compare Postal Realty Trust to related businesses based on the strength of its risk, earnings, dividends, institutional ownership, analyst recommendations, profitability and valuation.

Risk & Volatility

Postal Realty Trust has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, Postal Realty Trust’s rivals have a beta of 1.02, meaning that their average share price is 2% more volatile than the S&P 500.

Profitability

This table compares Postal Realty Trust and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Postal Realty Trust	17.15%	5.00%	2.40%
Postal Realty Trust Competitors	-17.72%	-7.46%	-0.23%

Analyst Ratings

This is a breakdown of current ratings for Postal Realty Trust and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Postal Realty Trust	0	2	6	0	2.75
Postal Realty Trust Competitors	944	2832	2690	25	2.28

Postal Realty Trust currently has a consensus target price of $25.38, indicating a potential upside of 15.12%. As a group, “Office REITs” companies have a potential upside of 2.19%. Given Postal Realty Trust’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Postal Realty Trust is more favorable than its rivals.

Valuation & Earnings

This table compares Postal Realty Trust and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Postal Realty Trust	$105.55 million	$14.15 million	38.67
Postal Realty Trust Competitors	$530.97 million	-$49.56 million	15.66

Postal Realty Trust’s rivals have higher revenue, but lower earnings than Postal Realty Trust. Postal Realty Trust 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.

Insider and Institutional Ownership

57.9% of Postal Realty Trust shares are held by institutional investors. Comparatively, 61.4% of shares of all “Office REITs” companies are held by institutional investors. 12.5% of Postal Realty Trust shares are held by insiders. Comparatively, 8.7% of shares of all “Office REITs” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Postal Realty Trust pays an annual dividend of $0.98 per share and has a dividend yield of 4.4%. Postal Realty Trust pays out 171.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Office REITs” companies pay a dividend yield of 4.9% and pay out -4.5% of their earnings in the form of a dividend. Postal Realty Trust has increased its dividend for 3 consecutive years. Postal Realty Trust lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Postal Realty Trust beats its rivals on 9 of the 15 factors compared.

About Postal Realty Trust

Postal Realty Trust, Inc. (NYSE: PSTL) is an internally managed real estate investment trust that owns properties primarily leased to the United States Postal Service ("USPS"). PSTL is focused on acquiring the network of USPS properties, which provide a critical element of the nation's logistics infrastructure that facilitates cost effective and efficient last-mile delivery solutions. As of December 31, 2023, PSTL owned 1,509 properties (including two properties accounted for as financing leases) located in 49 states and one territory comprising approximately 5.9 million net leasable interior square feet. Subsequent to quarter-end and through February 23, 2024, PSTL closed on eight additional properties comprising approximately 33,000 net leasable interior square feet.