Critical Survey: NETSTREIT (NTST) versus Its Rivals

NETSTREIT (NYSE:NTST) is one of 85 public companies in the “Retail REITs” industry, but how does it compare to its peers? We will compare NETSTREIT to related businesses based on the strength of its risk, dividends, analyst recommendations, earnings, valuation, institutional ownership and profitability.

Earnings and Valuation

This table compares NETSTREIT and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NETSTREIT	$224.31 million	$6.90 million	85.34
NETSTREIT Competitors	$822.76 million	$253.68 million	9.10

NETSTREIT’s peers have higher revenue and earnings than NETSTREIT. NETSTREIT is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

NETSTREIT has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, NETSTREIT’s peers have a beta of 0.88, meaning that their average share price is 12% less volatile than the S&P 500.

Profitability

This table compares NETSTREIT and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NETSTREIT	9.18%	1.33%	0.74%
NETSTREIT Competitors	30.12%	5.04%	3.14%

Analyst Ratings

This is a summary of recent recommendations and price targets for NETSTREIT and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NETSTREIT	0	1	13	0	2.93
NETSTREIT Competitors	963	3987	3457	139	2.32

NETSTREIT currently has a consensus target price of $21.67, suggesting a potential upside of 15.44%. As a group, “Retail REITs” companies have a potential upside of 9.04%. Given NETSTREIT’s stronger consensus rating and higher probable upside, research analysts plainly believe NETSTREIT is more favorable than its peers.

Institutional & Insider Ownership

59.3% of shares of all “Retail REITs” companies are owned by institutional investors. 0.7% of NETSTREIT shares are owned by insiders. Comparatively, 11.5% of shares of all “Retail REITs” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

NETSTREIT pays an annual dividend of $0.90 per share and has a dividend yield of 4.8%. NETSTREIT pays out 409.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Retail REITs” companies pay a dividend yield of 230.2% and pay out 78.0% of their earnings in the form of a dividend. NETSTREIT has increased its dividend for 1 consecutive years. NETSTREIT lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

NETSTREIT peers beat NETSTREIT on 11 of the 15 factors compared.

About NETSTREIT

NETSTREIT is a Dallas-based real estate investment trust (REIT) that owns and manages single-tenant retail properties leased to businesses across the United States. Its portfolio focuses on retailers that provide everyday goods and services, including grocery, convenience, pharmacy and home-improvement businesses. The company primarily uses net leases, under which tenants generally pay some or all property expenses in addition to rent. NETSTREIT was formed in 2019 and became a publicly traded company in 2020.