Head-To-Head Analysis: Postal Realty Trust (NYSE:PSTL) versus Rexford Industrial Realty (NYSE:REXR)

Postal Realty Trust (NYSE:PSTL) and Rexford Industrial Realty (NYSE:REXR) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, risk, valuation, earnings, institutional ownership, analyst recommendations and profitability.

Profitability

This table compares Postal Realty Trust and Rexford Industrial Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Postal Realty Trust	4.93%	1.10%	0.58%
Rexford Industrial Realty	30.40%	3.35%	2.29%

Volatility and Risk

Postal Realty Trust has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, Rexford Industrial Realty has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.

Insider and Institutional Ownership

57.9% of Postal Realty Trust shares are owned by institutional investors. Comparatively, 99.5% of Rexford Industrial Realty shares are owned by institutional investors. 13.6% of Postal Realty Trust shares are owned by insiders. Comparatively, 1.2% of Rexford Industrial Realty shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Postal Realty Trust and Rexford Industrial Realty”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Postal Realty Trust	$68.45 million	4.82	$3.71 million	$0.09	159.11
Rexford Industrial Realty	$903.94 million	10.47	$238.02 million	$1.23	34.59

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Postal Realty Trust and Rexford Industrial Realty, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Postal Realty Trust	0	1	1	0	2.50
Rexford Industrial Realty	1	6	3	0	2.20

Postal Realty Trust currently has a consensus price target of $15.75, suggesting a potential upside of 9.99%. Rexford Industrial Realty has a consensus price target of $51.45, suggesting a potential upside of 20.93%. Given Rexford Industrial Realty’s higher probable upside, analysts clearly believe Rexford Industrial Realty is more favorable than Postal Realty Trust.

Dividends

Postal Realty Trust pays an annual dividend of $0.96 per share and has a dividend yield of 6.7%. Rexford Industrial Realty pays an annual dividend of $1.67 per share and has a dividend yield of 3.9%. Postal Realty Trust pays out 1,066.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rexford Industrial Realty pays out 135.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Rexford Industrial Realty beats Postal Realty Trust on 12 of the 16 factors compared between the two stocks.

About Postal Realty Trust

Postal Realty Trust, Inc. (NYSE: PSTL) is an internally managed real estate investment trust that owns properties primarily leased to the United States Postal Service ("USPS"). PSTL is focused on acquiring the network of USPS properties, which provide a critical element of the nation's logistics infrastructure that facilitates cost effective and efficient last-mile delivery solutions. As of December 31, 2023, PSTL owned 1,509 properties (including two properties accounted for as financing leases) located in 49 states and one territory comprising approximately 5.9 million net leasable interior square feet. Subsequent to quarter-end and through February 23, 2024, PSTL closed on eight additional properties comprising approximately 33,000 net leasable interior square feet.

About Rexford Industrial Realty

Rexford Industrial creates value by investing in, operating and redeveloping industrial properties throughout infill Southern California, the world's fourth largest industrial market and consistently the highest-demand with lowest-supply major market in the nation. The Company's highly differentiated strategy enables internal and external growth opportunities through its proprietary value creation and asset management capabilities. Rexford Industrial's high-quality, irreplaceable portfolio comprises 371 properties with approximately 45.0 million rentable square feet occupied by a stable and diverse tenant base. Structured as a real estate investment trust (REIT) listed on the New York Stock Exchange under the ticker "REXR," Rexford Industrial is an S&P MidCap 400 Index member.