Comparing Rexford Industrial Realty (NYSE:REXR) & Alexander’s (NYSE:ALX)

Alexander’s (NYSE:ALX) and Rexford Industrial Realty (NYSE:REXR) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.

Earnings and Valuation

This table compares Alexander’s and Rexford Industrial Realty”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alexander’s	$213.18 million	5.64	$28.22 million	$5.49	42.87
Rexford Industrial Realty	$1.00 billion	8.66	$212.03 million	$0.85	44.07

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

Profitability

This table compares Alexander’s and Rexford Industrial Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alexander’s	13.24%	20.68%	2.23%
Rexford Industrial Realty	21.03%	2.37%	1.63%

Volatility & Risk

Alexander’s has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Rexford Industrial Realty has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Alexander’s and Rexford Industrial Realty, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alexander’s	0	1	0	1	3.00
Rexford Industrial Realty	2	9	3	0	2.07

Rexford Industrial Realty has a consensus target price of $42.31, indicating a potential upside of 12.94%. Given Rexford Industrial Realty’s higher possible upside, analysts clearly believe Rexford Industrial Realty is more favorable than Alexander’s.

Institutional and Insider Ownership

32.0% of Alexander’s shares are held by institutional investors. Comparatively, 99.5% of Rexford Industrial Realty shares are held by institutional investors. 26.3% of Alexander’s shares are held by company insiders. Comparatively, 1.2% of Rexford Industrial Realty shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Alexander’s pays an annual dividend of $18.00 per share and has a dividend yield of 7.6%. Rexford Industrial Realty pays an annual dividend of $1.72 per share and has a dividend yield of 4.6%. Alexander’s pays out 327.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rexford Industrial Realty pays out 202.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alexander’s has increased its dividend for 1 consecutive years and Rexford Industrial Realty has increased its dividend for 4 consecutive years.

Summary

Rexford Industrial Realty beats Alexander’s on 11 of the 18 factors compared between the two stocks.

About Alexander’s

Alexander’s, Inc. (NYSE: ALX) is a real estate investment trust (REIT), incorporated in Delaware, engaged in leasing, managing, developing and redeveloping its properties. All references to we, us, our, Company and Alexander’s refer to Alexander’s, Inc. and its consolidated subsidiaries. We are managed by, and our properties are leased and developed by, Vornado Realty Trust (Vornado) (NYSE: VNO). We have five properties in New York City.

About Rexford Industrial Realty

Rexford Industrial Realty, Inc. is a self-administered and self-managed real estate investment trust, which engages in owning and operating industrial properties in infill markets. The company was founded by Richard S. Ziman on January 18, 2013 and is headquartered in Los Angeles, CA.