Contrasting LXP Industrial Trust (NYSE:LXP) & Postal Realty Trust (NYSE:PSTL)

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Postal Realty Trust	$68.45 million	4.88	$3.71 million	$0.10	147.30
LXP Industrial Trust	$340.42 million	8.77	$30.38 million	$0.04	253.63

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

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, LXP Industrial Trust has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Insider and Institutional Ownership

57.9% of Postal Realty Trust shares are held by institutional investors. Comparatively, 93.5% of LXP Industrial Trust shares are held by institutional investors. 13.6% of Postal Realty Trust shares are held by insiders. Comparatively, 2.2% of LXP Industrial Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for Postal Realty Trust and LXP Industrial Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Postal Realty Trust	0	1	1	0	2.50
LXP Industrial Trust	0	1	3	0	2.75

Postal Realty Trust presently has a consensus price target of $15.75, indicating a potential upside of 6.92%. LXP Industrial Trust has a consensus price target of $11.25, indicating a potential upside of 10.89%. Given LXP Industrial Trust’s stronger consensus rating and higher probable upside, analysts plainly believe LXP Industrial Trust 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 6.5%. LXP Industrial Trust pays an annual dividend of $0.52 per share and has a dividend yield of 5.1%. Postal Realty Trust pays out 960.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LXP Industrial Trust pays out 1,300.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Postal Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Postal Realty Trust and LXP Industrial Trust’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%
LXP Industrial Trust	9.50%	1.51%	0.80%

Summary

LXP Industrial Trust 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 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.