Reviewing NETSTREIT (NYSE:NTST) and First Industrial Realty Trust (NYSE:FR)

NETSTREIT (NYSE:NTST) and First Industrial Realty Trust (NYSE:FR) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Volatility and Risk

NETSTREIT has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, First Industrial Realty Trust has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.

Profitability

This table compares NETSTREIT and First Industrial Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NETSTREIT	0.10%	0.01%	0.01%
First Industrial Realty Trust	34.03%	9.02%	4.48%

Earnings and Valuation

This table compares NETSTREIT and First Industrial Realty Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NETSTREIT	$172.96 million	9.34	-$11.94 million	N/A	N/A
First Industrial Realty Trust	$727.08 million	10.90	$247.44 million	$1.86	32.17

First Industrial Realty Trust has higher revenue and earnings than NETSTREIT.

Dividends

NETSTREIT pays an annual dividend of $0.86 per share and has a dividend yield of 4.4%. First Industrial Realty Trust pays an annual dividend of $1.78 per share and has a dividend yield of 3.0%. First Industrial Realty Trust pays out 95.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NETSTREIT has raised its dividend for 1 consecutive years and First Industrial Realty Trust has raised its dividend for 12 consecutive years.

Institutional and Insider Ownership

99.9% of First Industrial Realty Trust shares are held by institutional investors. 0.6% of NETSTREIT shares are held by insiders. Comparatively, 0.9% of First Industrial Realty Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for NETSTREIT and First Industrial Realty Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NETSTREIT	0	2	10	1	2.92
First Industrial Realty Trust	0	5	7	0	2.58

NETSTREIT currently has a consensus price target of $20.45, suggesting a potential upside of 5.76%. First Industrial Realty Trust has a consensus price target of $62.92, suggesting a potential upside of 5.15%. Given NETSTREIT’s stronger consensus rating and higher probable upside, equities analysts plainly believe NETSTREIT is more favorable than First Industrial Realty Trust.

Summary

First Industrial Realty Trust beats NETSTREIT on 11 of the 17 factors compared between the two stocks.

About NETSTREIT

NETSTREIT Corp. is an internally managed real estate investment trust (REIT) based in Dallas, Texas that specializes in acquiring single-tenant net lease retail properties nationwide. The growing portfolio consists of high-quality properties leased to e-commerce resistant tenants with healthy balance sheets. Led by a management team of seasoned commercial real estate executives, NETSTREIT’s strategy is to create the highest quality net lease retail portfolio in the country with the goal of generating consistent cash flows and dividends for its investors.

About First Industrial Realty Trust

First Industrial Realty Trust, Inc. (NYSE: FR) is a leading U.S.-only owner, operator, developer and acquirer of logistics properties. Through our fully integrated operating and investing platform, we provide high quality facilities and industry-leading customer service to multinational corporations and regional firms that are essential for their supply chains. Our portfolio and new investments are concentrated in 15 target MSAs with an emphasis on supply-constrained, coastally oriented markets. In total, we own and have under development approximately 68.5 million square feet of industrial space as of December 31, 2023.