Comparing National Retail Properties (NYSE:NNN) & LXP Industrial Trust (NYSE:LXP)

National Retail Properties (NYSE:NNNGet Rating) and LXP Industrial Trust (NYSE:LXPGet Rating) are both mid-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Insider & Institutional Ownership

88.3% of National Retail Properties shares are held by institutional investors. Comparatively, 98.1% of LXP Industrial Trust shares are held by institutional investors. 0.8% of National Retail Properties shares are held by company insiders. Comparatively, 2.1% of LXP Industrial Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares National Retail Properties and LXP Industrial Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Retail Properties 42.73% 8.05% 4.02%
LXP Industrial Trust 106.18% 16.80% 9.14%

Volatility and Risk

National Retail Properties has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, LXP Industrial Trust has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.

Dividends

National Retail Properties pays an annual dividend of $2.12 per share and has a dividend yield of 4.8%. LXP Industrial Trust pays an annual dividend of $0.48 per share and has a dividend yield of 4.1%. National Retail Properties pays out 126.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LXP Industrial Trust pays out 39.7% of its earnings in the form of a dividend. National Retail Properties has raised its dividend for 33 consecutive years and LXP Industrial Trust has raised its dividend for 2 consecutive years. National Retail Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for National Retail Properties and LXP Industrial Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Retail Properties 1 3 1 1 2.33
LXP Industrial Trust 1 1 2 0 2.25

National Retail Properties currently has a consensus price target of $49.89, suggesting a potential upside of 12.85%. LXP Industrial Trust has a consensus price target of $15.75, suggesting a potential upside of 34.73%. Given LXP Industrial Trust’s higher possible upside, analysts plainly believe LXP Industrial Trust is more favorable than National Retail Properties.

Valuation & Earnings

This table compares National Retail Properties and LXP Industrial Trust’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
National Retail Properties $726.41 million 10.71 $290.11 million $1.67 26.47
LXP Industrial Trust $344.00 million 9.78 $382.65 million $1.21 9.66

LXP Industrial Trust has lower revenue, but higher earnings than National Retail Properties. LXP Industrial Trust is trading at a lower price-to-earnings ratio than National Retail Properties, indicating that it is currently the more affordable of the two stocks.

National Retail Properties Company Profile (Get Rating)

National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases. As of September 30, 2020, the company owned 3,114 properties in 48 states with a gross leasable area of approximately 32.4 million square feet and with a weighted average remaining lease term of 10.7 years.

LXP Industrial Trust Company Profile (Get Rating)

Lexington Realty Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) that owns a portfolio of real estate assets consisting primarily of equity investments in single-tenant net-leased industrial properties across the United States. Lexington seeks to expand its industrial portfolio through build-to-suit transactions, sale-leaseback transactions and other transactions, including acquisitions.

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