Analyzing Postal Realty Trust (NYSE:PSTL) and Alexandria Real Estate Equities (NYSE:ARE)

Alexandria Real Estate Equities (NYSE:ARE) and Postal Realty Trust (NYSE:PSTL) are both finance 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 Alexandria Real Estate Equities and Postal Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alexandria Real Estate Equities	4.62%	0.64%	0.38%
Postal Realty Trust	10.43%	2.71%	1.34%

Earnings & Valuation

This table compares Alexandria Real Estate Equities and Postal Realty Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alexandria Real Estate Equities	$3.12 billion	4.12	$322.95 million	$0.76	97.57
Postal Realty Trust	$76.37 million	4.68	$6.60 million	$0.28	53.59

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

Institutional and Insider Ownership

96.5% of Alexandria Real Estate Equities shares are held by institutional investors. Comparatively, 57.9% of Postal Realty Trust shares are held by institutional investors. 1.2% of Alexandria Real Estate Equities shares are held by insiders. Comparatively, 13.2% of Postal Realty 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.

Dividends

Alexandria Real Estate Equities pays an annual dividend of $5.28 per share and has a dividend yield of 7.1%. Postal Realty Trust pays an annual dividend of $0.97 per share and has a dividend yield of 6.5%. Alexandria Real Estate Equities pays out 694.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Postal Realty Trust pays out 346.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alexandria Real Estate Equities has increased its dividend for 15 consecutive years and Postal Realty Trust has increased its dividend for 3 consecutive years. Alexandria Real Estate Equities is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent recommendations for Alexandria Real Estate Equities and Postal Realty Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alexandria Real Estate Equities	0	9	2	0	2.18
Postal Realty Trust	0	0	1	0	3.00

Alexandria Real Estate Equities currently has a consensus target price of $116.00, indicating a potential upside of 56.44%. Postal Realty Trust has a consensus target price of $16.50, indicating a potential upside of 9.96%. Given Alexandria Real Estate Equities’ higher possible upside, equities analysts plainly believe Alexandria Real Estate Equities is more favorable than Postal Realty Trust.

Volatility & Risk

Alexandria Real Estate Equities has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, Postal Realty Trust has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500.

Summary

Alexandria Real Estate Equities beats Postal Realty Trust on 10 of the 17 factors compared between the two stocks.

About Alexandria Real Estate Equities

Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500 company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. Alexandria has a total market capitalization of $33.1 billion and an asset base in North America of 73.5 million SF as of December 31, 2023, which includes 42.0 million RSF of operating properties, 5.5 million RSF of Class A/A+ properties undergoing construction and one near-term project expected to commence construction in the next two years, 2.1 million RSF of priority anticipated development and redevelopment projects, and 23.9 million SF of future development projects. Alexandria has a longstanding and proven track record of developing Class A/A+ properties clustered in life science, agtech, and advanced technology mega campuses that provide our innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science, agrifoodtech, climate innovation, and technology companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value.

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.