Mirvac Group (OTCMKTS:MRVGF) versus Alexander’s (NYSE:ALX) Financial Analysis

Alexander’s (NYSE:ALX) and Mirvac Group (OTCMKTS:MRVGF) are both real estate companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.

Dividends

Alexander’s pays an annual dividend of $18.00 per share and has a dividend yield of 6.8%. Mirvac Group pays an annual dividend of $0.09 per share and has a dividend yield of 8.1%. Alexander’s pays out 54.5% of its earnings in the form of a dividend. Mirvac Group pays out 74.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Alexander’s has raised its dividend for 1 consecutive years.

Earnings and Valuation

This table compares Alexander’s and Mirvac Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alexander’s	$214.80 million	6.25	$28.22 million	$33.05	7.96
Mirvac Group	N/A	N/A	N/A	$0.12	9.10

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

Institutional & Insider Ownership

32.0% of Alexander’s shares are owned by institutional investors. Comparatively, 48.6% of Mirvac Group shares are owned by institutional investors. 26.4% of Alexander’s shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Alexander’s and Mirvac Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alexander’s	79.06%	123.09%	14.43%
Mirvac Group	N/A	N/A	N/A

Analyst Ratings

This is a summary of current recommendations and price targets for Alexander’s and Mirvac Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alexander’s	1	0	1	1	2.67
Mirvac Group	0	0	0	0	0.00

Alexander’s presently has a consensus target price of $212.00, suggesting a potential downside of 19.39%. Given Alexander’s’ stronger consensus rating and higher probable upside, equities analysts plainly believe Alexander’s is more favorable than Mirvac Group.

Summary

Alexander’s beats Mirvac Group on 12 of the 15 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 Mirvac Group

Founded in 1972, Mirvac is an Australian Securities Exchange (ASX) top 50 company with an integrated asset creation and curation capability. For more than 50 years, we've dedicated ourselves to creating extraordinary urban places and experiences. We have over $35 billion of assets under management, together with a $12 billion commercial and mixed use development pipeline, and a $17 billion residential development pipeline, enabling us to deliver innovative and high-quality property for our customers, while driving long-term value for our securityholders.