Head-To-Head Comparison: Lexington Realty Trust (LXP) & Whitestone REIT (WSR)

Whitestone REIT (NYSE: WSR) and Lexington Realty Trust (NYSE:LXP) are both financials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.

Valuation and Earnings

This table compares Whitestone REIT and Lexington Realty Trust’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Whitestone REIT $104.44 million 5.41 $7.93 million $0.18 81.61
Lexington Realty Trust $429.50 million 5.48 $95.62 million $0.29 33.72

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

Profitability

This table compares Whitestone REIT and Lexington Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Whitestone REIT 5.77% 2.22% 0.72%
Lexington Realty Trust 17.96% 5.29% 2.00%

Institutional and Insider Ownership

49.8% of Whitestone REIT shares are owned by institutional investors. Comparatively, 73.9% of Lexington Realty Trust shares are owned by institutional investors. 5.3% of Whitestone REIT shares are owned by insiders. Comparatively, 3.1% of Lexington Realty Trust shares are owned 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.

Dividends

Whitestone REIT pays an annual dividend of $1.14 per share and has a dividend yield of 7.8%. Lexington Realty Trust pays an annual dividend of $0.70 per share and has a dividend yield of 7.2%. Whitestone REIT pays out 633.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Lexington Realty Trust pays out 241.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Lexington Realty Trust has increased its dividend for 6 consecutive years.

Analyst Ratings

This is a summary of recent recommendations for Whitestone REIT and Lexington Realty Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Whitestone REIT 1 1 3 0 2.40
Lexington Realty Trust 1 6 0 0 1.86

Whitestone REIT presently has a consensus price target of $14.75, indicating a potential upside of 0.41%. Lexington Realty Trust has a consensus price target of $10.55, indicating a potential upside of 7.87%. Given Lexington Realty Trust’s higher probable upside, analysts clearly believe Lexington Realty Trust is more favorable than Whitestone REIT.

Risk and Volatility

Whitestone REIT has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, Lexington Realty Trust has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Summary

Lexington Realty Trust beats Whitestone REIT on 11 of the 17 factors compared between the two stocks.

About Whitestone REIT

Whitestone REIT is a real estate investment trust. The Company is engaged in owning and operating commercial properties in culturally diverse markets in various metropolitan areas. The Company’s acquisition targets are located in densely populated, culturally diverse neighborhoods, primarily in and around Austin, Chicago, Dallas-Fort Worth, Houston, Phoenix and San Antonio. As of December 31, 2016, the Company owned or held interests in 69 commercial properties, including 15 properties in Houston, five properties in Dallas-Fort Worth, three properties in San Antonio, four properties in Austin, 27 properties in the Scottsdale and Phoenix, Arizona metropolitan areas, and one property in Buffalo Grove, Illinois, a suburb of Chicago. As of December 31, 2016, the Company’s properties included Heritage Trace Plaza, Headquarters Village, La Mirada, The Marketplace at Central, Mercado at Scottsdale Ranch, Paradise Plaza, Parkside Village North, Pima Norte and Quinlan Crossing.

About Lexington Realty Trust

Lexington Realty Trust is a real estate investment trust (REIT). The Company owns a portfolio of equity and debt investments in single-tenant commercial properties. As of December 31, 2016, the Company had equity ownership interests in approximately 195 consolidated real estate properties, located in 40 states and containing an aggregate of approximately 43.3 million square feet of space, approximately 96.0% of which was leased. The Company conducts its operations either directly or indirectly through property owner subsidiaries and lender subsidiaries, which are single purpose entities; an operating partnership, Lepercq Corporate Income Fund L.P. (LCIF), in which the Company is the sole unit holder of the general partner and the sole unit holder of the limited partner that holds a majority of the limited partner interests; Lexington Realty Advisors, Inc. (LRA), a subsidiary of the Company, and investments in joint ventures.

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