Seritage Growth Properties (NYSE:SRG) vs. Alexander’s (NYSE:ALX) Head to Head Comparison

Alexander’s (NYSE:ALX) and Seritage Growth Properties (NYSE:SRG) are both small-cap real estate companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations and price targets for Alexander’s and Seritage Growth Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alexander’s	1	0	1	1	2.67
Seritage Growth Properties	1	0	0	0	1.00

Alexander’s presently has a consensus price target of $212.00, indicating a potential downside of 16.43%. Given Alexander’s’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Alexander’s is more favorable than Seritage Growth Properties.

Profitability

This table compares Alexander’s and Seritage Growth Properties’ 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%
Seritage Growth Properties	-419.02%	-17.06%	-12.94%

Volatility & Risk

Alexander’s has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, Seritage Growth Properties has a beta of 2.19, indicating that its stock price is 119% more volatile than the S&P 500.

Earnings and Valuation

This table compares Alexander’s and Seritage Growth Properties”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alexander’s	$213.18 million	6.08	$28.22 million	$33.05	7.68
Seritage Growth Properties	$18.20 million	5.90	-$68.21 million	($1.04)	-1.83

Alexander’s has higher revenue and earnings than Seritage Growth Properties. Seritage Growth Properties is trading at a lower price-to-earnings ratio than Alexander’s, 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, 78.9% of Seritage Growth Properties shares are owned by institutional investors. 26.4% of Alexander’s shares are owned by company insiders. Comparatively, 0.2% of Seritage Growth Properties shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Alexander’s beats Seritage Growth Properties on 13 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 Seritage Growth Properties

Seritage Growth Properties operates as a real estate investment trust. The firm engages in the acquisition, ownership, development, redevelopment, management, and leasing of retail properties throughout the United States. Its property portfolio includes mall, shopping centers and freestanding locations. The company was founded on June 3, 2015 and is headquartered in New York, NY.