Critical Review: Acadia Realty Trust (NYSE:AKR) versus NETSTREIT (NYSE:NTST)

NETSTREIT (NYSE:NTST) and Acadia Realty Trust (NYSE:AKR) are both real estate companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, valuation, profitability, analyst recommendations, dividends, earnings and institutional ownership.

Earnings & Valuation

This table compares NETSTREIT and Acadia Realty Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NETSTREIT	$195.01 million	8.88	$6.90 million	$0.15	113.70
Acadia Realty Trust	$410.76 million	6.19	$16.90 million	$0.34	54.42

Acadia Realty Trust has higher revenue and earnings than NETSTREIT. Acadia Realty Trust is trading at a lower price-to-earnings ratio than NETSTREIT, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

97.7% of Acadia Realty Trust shares are owned by institutional investors. 0.7% of NETSTREIT shares are owned by insiders. Comparatively, 3.1% of Acadia Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

NETSTREIT has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, Acadia Realty Trust has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Profitability

This table compares NETSTREIT and Acadia Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NETSTREIT	6.35%	0.95%	0.51%
Acadia Realty Trust	12.14%	1.85%	1.04%

Dividends

NETSTREIT pays an annual dividend of $0.90 per share and has a dividend yield of 5.3%. Acadia Realty Trust pays an annual dividend of $0.80 per share and has a dividend yield of 4.3%. NETSTREIT pays out 600.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Acadia Realty Trust pays out 235.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NETSTREIT has raised its dividend for 1 consecutive years and Acadia Realty Trust has raised its dividend for 2 consecutive years.

Analyst Recommendations

This is a summary of current ratings and price targets for NETSTREIT and Acadia Realty Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NETSTREIT	0	2	12	0	2.86
Acadia Realty Trust	0	3	4	1	2.75

NETSTREIT presently has a consensus price target of $22.46, indicating a potential upside of 31.68%. Acadia Realty Trust has a consensus price target of $23.80, indicating a potential upside of 28.62%. Given NETSTREIT’s stronger consensus rating and higher probable upside, research analysts clearly believe NETSTREIT is more favorable than Acadia Realty Trust.

Summary

Acadia Realty Trust beats NETSTREIT on 12 of the 18 factors compared between the two stocks.

About NETSTREIT

NETSTREIT Corp. is an internally managed real estate investment trust (REIT) based in Dallas, Texas that specializes in acquiring single-tenant net lease retail properties nationwide. The growing portfolio consists of high-quality properties leased to e-commerce resistant tenants with healthy balance sheets. Led by a management team of seasoned commercial real estate executives, NETSTREIT’s strategy is to create the highest quality net lease retail portfolio in the country with the goal of generating consistent cash flows and dividends for its investors.

About Acadia Realty Trust

Acadia Realty Trust is an equity real estate investment trust focused on delivering long-term, profitable growth via its dual Core Portfolio and Fund operating platforms and its disciplined, location-driven investment strategy. Acadia Realty Trust is accomplishing this goal by building a best-in-class core real estate portfolio with meaningful concentrations of assets in the nation's most dynamic corridors; making profitable opportunistic and value-add investments through its series of discretionary, institutional funds; and maintaining a strong balance sheet.