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

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Alexander’s and Mirvac Group, as provided 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, indicating a potential downside of 19.76%. Given Alexander’s’ stronger consensus rating and higher possible upside, analysts plainly believe Alexander’s is more favorable than Mirvac Group.

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 increased its dividend for 1 consecutive years.

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

Institutional & Insider Ownership

32.0% of Alexander’s shares are held by institutional investors. Comparatively, 48.6% of Mirvac Group shares are held by institutional investors. 26.4% of Alexander’s 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.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alexander’s	$213.18 million	6.33	$28.22 million	$33.05	7.99
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.

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.