Analyzing LXP Industrial Trust (NYSE:LXP) & Net Lease Office Properties (NYSE:NLOP)

LXP Industrial Trust (NYSE:LXP) and Net Lease Office Properties (NYSE:NLOP) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.

Dividends

LXP Industrial Trust pays an annual dividend of $0.52 per share and has a dividend yield of 5.5%. Net Lease Office Properties pays an annual dividend of $0.34 per share and has a dividend yield of 1.1%. LXP Industrial Trust pays out 866.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares LXP Industrial Trust and Net Lease Office Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LXP Industrial Trust	7.64%	1.24%	0.65%
Net Lease Office Properties	-122.90%	-30.16%	-17.58%

Valuation and Earnings

This table compares LXP Industrial Trust and Net Lease Office Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LXP Industrial Trust	$340.50 million	8.24	$30.38 million	$0.06	158.86
Net Lease Office Properties	$174.96 million	2.65	-$131.75 million	N/A	N/A

LXP Industrial Trust has higher revenue and earnings than Net Lease Office Properties.

Institutional & Insider Ownership

93.5% of LXP Industrial Trust shares are held by institutional investors. Comparatively, 58.3% of Net Lease Office Properties shares are held by institutional investors. 2.2% of LXP Industrial Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for LXP Industrial Trust and Net Lease Office Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LXP Industrial Trust	0	1	3	0	2.75
Net Lease Office Properties	0	0	1	0	3.00

LXP Industrial Trust currently has a consensus target price of $11.25, indicating a potential upside of 18.05%. Net Lease Office Properties has a consensus target price of $46.00, indicating a potential upside of 46.40%. Given Net Lease Office Properties’ stronger consensus rating and higher probable upside, analysts plainly believe Net Lease Office Properties is more favorable than LXP Industrial Trust.

Summary

LXP Industrial Trust beats Net Lease Office Properties on 10 of the 13 factors compared between the two stocks.

About LXP Industrial Trust

LXP Industrial Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) focused on single-tenant industrial real estate investments across the United States. LXP seeks to expand its industrial portfolio through acquisitions, build-to-suit transactions, sale-leaseback transactions, development projects and other transactions.

About Net Lease Office Properties

Net Lease Office Properties (NYSE: NLOP) is a publicly traded real estate investment trust with a portfolio of 59 high-quality office properties, totaling approximately 8.7 million leasable square feet primarily leased to corporate tenants on a single-tenant net lease basis. The vast majority of the office properties owned by NLOP are located in the U.S., with the balance in Europe. The portfolio consists of 62 corporate tenants operating in a variety of industries, generating annualized based rent (ABR) of approximately $145 million. NLOP's business plan is to focus on realizing value for its shareholders primarily through strategic asset management and disposition of its property portfolio over time. Given WPC's extensive knowledge of the portfolio, NLOP is externally managed and advised by wholly owned affiliates of WPC to successfully execute on its business strategy. Over the course of its 50-year history, WPC has developed significant expertise in the single-tenant office real estate sector, including the operation, leasing, acquisition and development of assets through many market cycles, and has a proven track record of execution.