InvenTrust Properties (NYSE:IVT) versus Peakstone Realty Trust (NYSE:PKST) Critical Contrast

Peakstone Realty Trust (NYSE:PKST) and InvenTrust Properties (NYSE:IVT) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.

Dividends

Peakstone Realty Trust pays an annual dividend of $0.90 per share and has a dividend yield of 7.7%. InvenTrust Properties pays an annual dividend of $0.90 per share and has a dividend yield of 3.3%. Peakstone Realty Trust pays out -5.8% of its earnings in the form of a dividend. InvenTrust Properties pays out 900.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Peakstone Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Peakstone Realty Trust and InvenTrust Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Peakstone Realty Trust	-224.52%	-43.88%	-19.43%
InvenTrust Properties	2.46%	0.42%	0.26%

Volatility and Risk

Peakstone Realty Trust has a beta of 2.63, indicating that its stock price is 163% more volatile than the S&P 500. Comparatively, InvenTrust Properties has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.

Institutional and Insider Ownership

39.0% of Peakstone Realty Trust shares are owned by institutional investors. Comparatively, 61.7% of InvenTrust Properties shares are owned by institutional investors. 0.4% of Peakstone Realty Trust shares are owned by insiders. Comparatively, 0.4% of InvenTrust Properties shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Peakstone Realty Trust and InvenTrust Properties’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peakstone Realty Trust	$239.95 million	1.78	-$550.58 million	($15.55)	-0.75
InvenTrust Properties	$263.01 million	7.13	$5.27 million	$0.10	276.10

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Peakstone Realty Trust and InvenTrust Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peakstone Realty Trust	0	1	0	0	2.00
InvenTrust Properties	0	0	1	0	3.00

Peakstone Realty Trust presently has a consensus target price of $15.00, indicating a potential upside of 27.77%. InvenTrust Properties has a consensus target price of $27.00, indicating a potential downside of 2.21%. Given Peakstone Realty Trust’s higher probable upside, equities analysts clearly believe Peakstone Realty Trust is more favorable than InvenTrust Properties.

Summary

InvenTrust Properties beats Peakstone Realty Trust on 11 of the 16 factors compared between the two stocks.

About Peakstone Realty Trust

Peakstone Realty Trust (NYSE: PKST) is an internally managed, real estate investment trust (REIT) that owns and operates a high-quality, newer-vintage portfolio of predominantly single-tenant industrial and office properties. These assets are generally leased to creditworthy tenants under long-term net lease agreements with contractual rent escalations. As of March 31, 2023, Peakstone's wholly-owned portfolio consists of 19 million square feet across 24 states in primarily high-growth, strategic coastal and sunbelt markets.

About InvenTrust Properties

InvenTrust Properties Corp. (the "Company," "IVT," or "InvenTrust") is a premier Sun Belt, multi-tenant essential retail REIT that owns, leases, redevelops, acquires and manages grocery-anchored neighborhood and community centers as well as high-quality power centers that often have a grocery component. Management pursues the Company's business strategy by acquiring retail properties in Sun Belt markets, opportunistically disposing of retail properties, maintaining a flexible capital structure, and enhancing environmental, social and governance ("ESG") practices and standards. A trusted, local operator bringing real estate expertise to its tenant relationships, IVT has built a strong reputation with market participants across its portfolio. IVT is committed to leadership in ESG practices and has been a Global Real Estate Sustainability Benchmark ("GRESB") member since 2013.