Head-To-Head Survey: Alexander’s (NYSE:ALX) and Seritage Growth Properties (NYSE:SRG)

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

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 and Risk

Alexander’s has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Seritage Growth Properties has a beta of 2.26, indicating that its share price is 126% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Alexander’s and Seritage Growth Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alexander’s	1	1	1	0	2.00
Seritage Growth Properties	1	0	0	0	1.00

Alexander’s currently has a consensus target price of $192.00, indicating a potential downside of 23.82%. Given Alexander’s’ stronger consensus rating and higher possible upside, equities analysts plainly believe Alexander’s is more favorable than Seritage Growth Properties.

Institutional and 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 insiders. Comparatively, 0.2% of Seritage Growth Properties shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alexander’s	$213.18 million	6.04	$28.22 million	$33.05	7.63
Seritage Growth Properties	$18.20 million	5.17	-$68.21 million	($1.04)	-1.61

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.

Summary

Alexander’s beats Seritage Growth Properties on 12 of the 14 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.