Contrasting Presidio Property Trust (NASDAQ:SQFT) & Dynex Capital (NYSE:DX)

Dynex Capital (NYSE:DX) and Presidio Property Trust (NASDAQ:SQFT) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.

Insider & Institutional Ownership

38.3% of Dynex Capital shares are held by institutional investors. Comparatively, 38.9% of Presidio Property Trust shares are held by institutional investors. 1.0% of Dynex Capital shares are held by insiders. Comparatively, 24.0% of Presidio Property Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for Dynex Capital and Presidio Property Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dynex Capital	0	1	3	0	2.75
Presidio Property Trust	0	0	0	0	0.00

Dynex Capital presently has a consensus target price of $12.83, suggesting a potential upside of 7.84%. Given Dynex Capital’s stronger consensus rating and higher probable upside, analysts plainly believe Dynex Capital is more favorable than Presidio Property Trust.

Volatility & Risk

Dynex Capital has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, Presidio Property Trust has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500.

Dividends

Dynex Capital pays an annual dividend of $2.04 per share and has a dividend yield of 17.1%. Presidio Property Trust pays an annual dividend of $0.02 per share and has a dividend yield of 0.3%. Dynex Capital pays out 264.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Presidio Property Trust pays out -0.1% of its earnings in the form of a dividend. Dynex Capital has raised its dividend for 5 consecutive years and Presidio Property Trust has raised its dividend for 1 consecutive years. Dynex Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Dynex Capital and Presidio Property Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dynex Capital	$108.02 million	11.81	$113.90 million	$0.77	15.45
Presidio Property Trust	$18.26 million	0.39	$10.15 million	($16.50)	-0.36

Dynex Capital has higher revenue and earnings than Presidio Property Trust. Presidio Property Trust is trading at a lower price-to-earnings ratio than Dynex Capital, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Dynex Capital and Presidio Property Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dynex Capital	35.65%	-2.24%	-0.30%
Presidio Property Trust	-176.04%	-29.85%	-9.37%

Summary

Dynex Capital beats Presidio Property Trust on 13 of the 17 factors compared between the two stocks.

About Dynex Capital

Dynex Capital, Inc., a mortgage real estate investment trust, invests in mortgage-backed securities (MBS) on a leveraged basis in the United States. It invests in agency and non-agency MBS consisting of residential MBS, commercial MBS (CMBS), and CMBS interest-only securities. Agency MBS have a guaranty of principal payment by an agency of the U.S. government or a U.S. government-sponsored entity, such as Fannie Mae and Freddie Mac. Non-Agency MBS have no such guaranty of payment. The company has qualified as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal income taxes if it distributes at least 90% of its taxable income to its stockholders as dividends. Dynex Capital, Inc. was incorporated in 1987 and is headquartered in Glen Allen, Virginia.

About Presidio Property Trust

Presidio Property Trust, Inc. (we, our, us or the Company) is an internally-managed real estate investment trust (REIT), with holdings in office, industrial, retail and model home properties. We were incorporated in the State of California on September 28, 1999, and in August 2010, we reincorporated as a Maryland corporation. In October 2017, we changed our name from NetREIT, Inc., to Presidio Property Trust, Inc. Through Presidio Property Trust, Inc., its subsidiaries, and its partnerships, we own 12 commercial properties in fee interest, two of which we own as a partial interest in various affiliates, in which we serve as general partner, member and/or manager, and a special purpose acquisition company (until deconsolidation in September 2023). The Company has determined that the limited partnerships in which it owns less than 100% should be included in the Company’s consolidated financial statements as the Company directs their activities and has control of such limited partnerships.