Critical Survey: Stag Industrial (NYSE:STAG) versus LXP Industrial Trust (NYSE:LXP)

LXP Industrial Trust (NYSE:LXP – Get Free Report) and Stag Industrial (NYSE:STAG – Get Free Report) are both mid-cap real estate companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Volatility and Risk

LXP Industrial Trust has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, Stag Industrial has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Earnings & Valuation

This table compares LXP Industrial Trust and Stag Industrial”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LXP Industrial Trust $350.23 million 10.27 $113.16 million $1.00 60.99
Stag Industrial $845.18 million 8.08 $273.52 million $1.30 27.23

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

Profitability

This table compares LXP Industrial Trust and Stag Industrial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LXP Industrial Trust 18.66% 3.37% 1.83%
Stag Industrial 28.04% 6.79% 3.43%

Insider and Institutional Ownership

93.5% of LXP Industrial Trust shares are owned by institutional investors. Comparatively, 88.7% of Stag Industrial shares are owned by institutional investors. 2.8% of LXP Industrial Trust shares are owned by company insiders. Comparatively, 1.1% of Stag Industrial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

LXP Industrial Trust pays an annual dividend of $2.80 per share and has a dividend yield of 4.6%. Stag Industrial pays an annual dividend of $1.55 per share and has a dividend yield of 4.4%. LXP Industrial Trust pays out 280.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Stag Industrial pays out 119.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LXP Industrial Trust has raised its dividend for 3 consecutive years and Stag Industrial has raised its dividend for 7 consecutive years.

Analyst Recommendations

This is a breakdown of recent recommendations for LXP Industrial Trust and Stag Industrial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LXP Industrial Trust 0 6 2 0 2.25
Stag Industrial 1 5 3 0 2.22

LXP Industrial Trust presently has a consensus price target of $57.40, suggesting a potential downside of 5.89%. Stag Industrial has a consensus price target of $41.11, suggesting a potential upside of 16.12%. Given Stag Industrial’s higher possible upside, analysts plainly believe Stag Industrial is more favorable than LXP Industrial Trust.

Summary

Stag Industrial beats LXP Industrial Trust on 10 of the 17 factors compared between the two stocks.

About LXP Industrial Trust

(Get Free Report)

LXP Industrial Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) focused on single-tenant industrial real estate investments across the United States. LXP seeks to expand its industrial portfolio through acquisitions, build-to-suit transactions, sale-leaseback transactions, development projects and other transactions.

About Stag Industrial

(Get Free Report)

STAG Industrial, Inc. is a real estate investment company, which engages in acquiring, owning, and managing single-tenant, industrial real estate assets. It offers industrial real estate operating platform to real estate ownership. The company was founded by Benjamin S. Butcher on July 21, 2010 and is headquartered in Boston, MA.

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