Critical Survey: NETSTREIT (NYSE:NTST) & 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 stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations for NETSTREIT and First Industrial Realty Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NETSTREIT	0	2	9	1	2.92
First Industrial Realty Trust	0	5	8	0	2.62

NETSTREIT presently has a consensus target price of $20.64, indicating a potential upside of 0.71%. First Industrial Realty Trust has a consensus target price of $63.21, indicating a potential upside of 5.22%. Given First Industrial Realty Trust’s higher probable upside, analysts clearly believe First Industrial Realty Trust is more favorable than NETSTREIT.

Insider & Institutional 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 hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

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	3.54%	0.51%	0.29%
First Industrial Realty Trust	34.03%	9.02%	4.48%

Valuation and Earnings

This table compares NETSTREIT and First Industrial Realty Trust”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NETSTREIT	$195.01 million	10.20	$6.90 million	$0.09	227.67
First Industrial Realty Trust	$727.08 million	10.95	$247.44 million	$1.86	32.30

First Industrial Realty Trust has higher revenue and earnings than NETSTREIT. First Industrial Realty Trust is trading at a lower price-to-earnings ratio than NETSTREIT, indicating that it is currently the more affordable of the two stocks.

Dividends

NETSTREIT pays an annual dividend of $0.86 per share and has a dividend yield of 4.2%. First Industrial Realty Trust pays an annual dividend of $1.78 per share and has a dividend yield of 3.0%. NETSTREIT pays out 955.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.

Risk & Volatility

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

Summary

First Industrial Realty Trust beats NETSTREIT on 13 of the 18 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.