Liberty Property Trust (NYSE:LPT) and Alexander’s (NYSE:ALX) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.
Valuation and Earnings
This table compares Liberty Property Trust and Alexander’s’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Liberty Property Trust||$704.89 million||13.87||$479.61 million||$2.20||28.16|
|Alexander’s||$226.35 million||7.02||$60.08 million||$19.47||15.97|
Liberty Property Trust has higher revenue and earnings than Alexander’s. Alexander’s is trading at a lower price-to-earnings ratio than Liberty Property Trust, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Liberty Property Trust has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Alexander’s has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500.
This is a summary of current ratings and price targets for Liberty Property Trust and Alexander’s, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Liberty Property Trust||0||4||0||0||2.00|
Liberty Property Trust presently has a consensus price target of $53.75, indicating a potential downside of 13.24%. Given Liberty Property Trust’s higher probable upside, research analysts plainly believe Liberty Property Trust is more favorable than Alexander’s.
Insider and Institutional Ownership
91.3% of Liberty Property Trust shares are held by institutional investors. Comparatively, 35.4% of Alexander’s shares are held by institutional investors. 1.4% of Liberty Property Trust shares are held by company insiders. Comparatively, 26.0% of Alexander’s shares are held by company 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.
This table compares Liberty Property Trust and Alexander’s’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Liberty Property Trust||64.23%||5.79%||2.91%|
Liberty Property Trust pays an annual dividend of $1.64 per share and has a dividend yield of 2.6%. Alexander’s pays an annual dividend of $18.00 per share and has a dividend yield of 5.8%. Liberty Property Trust pays out 74.5% of its earnings in the form of a dividend. Alexander’s pays out 92.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Liberty Property Trust has increased its dividend for 1 consecutive years and Alexander’s has increased its dividend for 9 consecutive years. Alexander’s is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Liberty Property Trust beats Alexander’s on 8 of the 15 factors compared between the two stocks.
Liberty Property Trust Company Profile
Liberty Property Trust is a leader in commercial real estate, serving customers in the United States and United Kingdom, through the development, acquisition, ownership and management of superior logistics, warehouse, manufacturing, and R&D facilities in key markets. Liberty's 108 million square foot operating portfolio provides productive work environments to 1,200 tenants.
Alexander’s Company Profile
Alexander’s, Inc. is a real estate investment trust, which engages in leasing, managing, development and redeveloping its properties. Its operating properties are located in the greater New York City metropolitan area. The company was founded on May 16, 1955 and is headquartered in Paramus, NJ.
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