Head-To-Head Survey: Postal Realty Trust (NYSE:PSTL) and Empire State Realty OP (NYSE:ESBA)

Empire State Realty OP (NYSE:ESBA) and Postal Realty Trust (NYSE:PSTL) are both real estate companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Insider and Institutional Ownership

57.9% of Postal Realty Trust shares are held by institutional investors. 12.5% of Postal Realty Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Empire State Realty OP and Postal Realty Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Empire State Realty OP	N/A	N/A	N/A	N/A	N/A
Postal Realty Trust	$95.82 million	6.66	$14.15 million	$0.51	45.32

Postal Realty Trust has higher revenue and earnings than Empire State Realty OP.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Empire State Realty OP and Postal Realty Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Empire State Realty OP	0	0	0	0	0.00
Postal Realty Trust	0	1	6	1	3.00

Postal Realty Trust has a consensus target price of $23.38, indicating a potential upside of 1.13%. Given Postal Realty Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Postal Realty Trust is more favorable than Empire State Realty OP.

Dividends

Empire State Realty OP pays an annual dividend of $0.14 per share and has a dividend yield of 2.8%. Postal Realty Trust pays an annual dividend of $0.98 per share and has a dividend yield of 4.2%. Postal Realty Trust pays out 192.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Postal Realty Trust has raised its dividend for 3 consecutive years. Postal Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Empire State Realty OP and Postal Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Empire State Realty OP	N/A	N/A	N/A
Postal Realty Trust	15.84%	4.53%	2.14%

Summary

Postal Realty Trust beats Empire State Realty OP on 12 of the 13 factors compared between the two stocks.

About Empire State Realty OP

Empire State Realty OP, L.P. operates as a subsidiary of Empire State Realty Trust, Inc.

About Postal Realty Trust

Postal Realty Trust, Inc. (NYSE: PSTL) is an internally managed real estate investment trust that owns properties primarily leased to the United States Postal Service ("USPS"). PSTL is focused on acquiring the network of USPS properties, which provide a critical element of the nation's logistics infrastructure that facilitates cost effective and efficient last-mile delivery solutions. As of December 31, 2023, PSTL owned 1,509 properties (including two properties accounted for as financing leases) located in 49 states and one territory comprising approximately 5.9 million net leasable interior square feet. Subsequent to quarter-end and through February 23, 2024, PSTL closed on eight additional properties comprising approximately 33,000 net leasable interior square feet.