Comparing LXP Industrial Trust (NYSE:LXP) & Stag Industrial (NYSE:STAG)

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

Institutional and Insider Ownership

88.7% of Stag Industrial shares are held by institutional investors. Comparatively, 93.5% of LXP Industrial Trust shares are held by institutional investors. 1.1% of Stag Industrial shares are held by company insiders. Comparatively, 2.8% of LXP Industrial Trust shares are held by company 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.

Profitability

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

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

Risk & Volatility

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

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stag Industrial $845.18 million 8.17 $273.52 million $1.30 27.54
LXP Industrial Trust $350.23 million 10.28 $113.16 million $1.00 61.05

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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Stag Industrial and LXP Industrial Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stag Industrial 1 5 3 0 2.22
LXP Industrial Trust 0 5 3 0 2.38

Stag Industrial presently has a consensus price target of $41.11, indicating a potential upside of 14.82%. LXP Industrial Trust has a consensus price target of $57.40, indicating a potential downside of 5.97%. Given Stag Industrial’s higher possible upside, analysts plainly believe Stag Industrial is more favorable than LXP Industrial Trust.

Dividends

Stag Industrial pays an annual dividend of $1.55 per share and has a dividend yield of 4.3%. LXP Industrial Trust pays an annual dividend of $2.80 per share and has a dividend yield of 4.6%. 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 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 has raised its dividend for 7 consecutive years and LXP Industrial Trust has raised its dividend for 3 consecutive years.

Summary

Stag Industrial beats LXP Industrial Trust on 9 of the 16 factors compared between the two stocks.

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.

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.

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