Head-To-Head Contrast: Seritage Growth Properties (NYSE:SRG) & Alexandria Real Estate Equities (NYSE:ARE)

Seritage Growth Properties (NYSE:SRG) and Alexandria Real Estate Equities (NYSE:ARE) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Institutional & Insider Ownership

78.9% of Seritage Growth Properties shares are owned by institutional investors. Comparatively, 96.5% of Alexandria Real Estate Equities shares are owned by institutional investors. 0.6% of Seritage Growth Properties shares are owned by insiders. Comparatively, 1.1% of Alexandria Real Estate Equities shares are owned 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.

Earnings & Valuation

This table compares Seritage Growth Properties and Alexandria Real Estate Equities”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seritage Growth Properties	$18.20 million	8.00	-$68.21 million	($1.30)	-1.99
Alexandria Real Estate Equities	$3.03 billion	2.44	-$1.43 billion	($8.44)	-5.05

Seritage Growth Properties has higher earnings, but lower revenue than Alexandria Real Estate Equities. Alexandria Real Estate Equities is trading at a lower price-to-earnings ratio than Seritage Growth Properties, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Seritage Growth Properties and Alexandria Real Estate Equities, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seritage Growth Properties	1	0	0	0	1.00
Alexandria Real Estate Equities	2	12	3	0	2.06

Alexandria Real Estate Equities has a consensus price target of $64.33, suggesting a potential upside of 51.06%. Given Alexandria Real Estate Equities’ stronger consensus rating and higher probable upside, analysts plainly believe Alexandria Real Estate Equities is more favorable than Seritage Growth Properties.

Profitability

This table compares Seritage Growth Properties and Alexandria Real Estate Equities’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Seritage Growth Properties	-374.73%	-19.39%	-12.53%
Alexandria Real Estate Equities	-47.23%	-6.82%	-3.90%

Volatility & Risk

Seritage Growth Properties has a beta of 2.41, suggesting that its share price is 141% more volatile than the S&P 500. Comparatively, Alexandria Real Estate Equities has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.

Summary

Alexandria Real Estate Equities beats Seritage Growth Properties on 9 of the 14 factors compared between the two stocks.

About Seritage Growth Properties

Seritage Growth Properties operates as a real estate investment trust. The firm engages in the acquisition, ownership, development, redevelopment, management, and leasing of retail properties throughout the United States. Its property portfolio includes mall, shopping centers and freestanding locations. The company was founded on June 3, 2015 and is headquartered in New York, NY.

About Alexandria Real Estate Equities

Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500 company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. Alexandria has a total market capitalization of $33.1 billion and an asset base in North America of 73.5 million SF as of December 31, 2023, which includes 42.0 million RSF of operating properties, 5.5 million RSF of Class A/A+ properties undergoing construction and one near-term project expected to commence construction in the next two years, 2.1 million RSF of priority anticipated development and redevelopment projects, and 23.9 million SF of future development projects. Alexandria has a longstanding and proven track record of developing Class A/A+ properties clustered in life science, agtech, and advanced technology mega campuses that provide our innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science, agrifoodtech, climate innovation, and technology companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value.