Contrasting NETSTREIT (NYSE:NTST) & Urban Edge Properties (NYSE:UE)

Urban Edge Properties (NYSE:UE) and NETSTREIT (NYSE:NTST) are both real estate companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.

Profitability

This table compares Urban Edge Properties and NETSTREIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Urban Edge Properties	13.72%	4.92%	2.03%
NETSTREIT	6.35%	0.95%	0.51%

Risk and Volatility

Urban Edge Properties has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, NETSTREIT has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.

Valuation & Earnings

This table compares Urban Edge Properties and NETSTREIT”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Urban Edge Properties	$471.93 million	5.23	$93.54 million	$0.54	36.23
NETSTREIT	$195.01 million	9.21	$6.90 million	$0.15	117.93

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

Insider & Institutional Ownership

94.9% of Urban Edge Properties shares are owned by institutional investors. 2.7% of Urban Edge Properties shares are owned by insiders. Comparatively, 0.7% of NETSTREIT shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Urban Edge Properties pays an annual dividend of $0.84 per share and has a dividend yield of 4.3%. NETSTREIT pays an annual dividend of $0.90 per share and has a dividend yield of 5.1%. Urban Edge Properties pays out 155.6% 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 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. Urban Edge Properties has increased its dividend for 2 consecutive years and NETSTREIT has increased its dividend for 1 consecutive years.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Urban Edge Properties and NETSTREIT, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Urban Edge Properties	0	2	2	0	2.50
NETSTREIT	0	2	13	0	2.87

Urban Edge Properties currently has a consensus price target of $23.67, indicating a potential upside of 20.97%. NETSTREIT has a consensus price target of $22.81, indicating a potential upside of 28.93%. Given NETSTREIT’s stronger consensus rating and higher possible upside, analysts clearly believe NETSTREIT is more favorable than Urban Edge Properties.

Summary

Urban Edge Properties beats NETSTREIT on 11 of the 17 factors compared between the two stocks.

About Urban Edge Properties

Urban Edge Properties is a NYSE listed real estate investment trust focused on owning, managing, acquiring, developing, and redeveloping retail real estate in urban communities, primarily in the Washington, D.C. to Boston corridor. Urban Edge owns 76 properties totaling 17.1 million square feet of gross leasable area.

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.