Financial Contrast: Alexander’s (NYSE:ALX) and Mirvac Group (OTCMKTS:MRVGF)

Mirvac Group (OTCMKTS:MRVGF) and Alexander’s (NYSE:ALX) are both real estate companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Profitability

This table compares Mirvac Group and Alexander’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mirvac Group	N/A	N/A	N/A
Alexander’s	79.06%	123.09%	14.43%

Analyst Recommendations

This is a breakdown of recent recommendations for Mirvac Group and Alexander’s, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mirvac Group	0	0	0	0	0.00
Alexander’s	1	0	1	1	2.67

Alexander’s has a consensus price target of $212.00, suggesting a potential downside of 21.70%. Given Alexander’s’ stronger consensus rating and higher possible upside, analysts clearly believe Alexander’s is more favorable than Mirvac Group.

Dividends

Mirvac Group pays an annual dividend of $0.09 per share and has a dividend yield of 8.1%. Alexander’s pays an annual dividend of $18.00 per share and has a dividend yield of 6.6%. Mirvac Group pays out 74.0% of its earnings in the form of a dividend. Alexander’s pays out 54.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Alexander’s has increased its dividend for 1 consecutive years.

Institutional and Insider Ownership

48.6% of Mirvac Group shares are held by institutional investors. Comparatively, 32.0% of Alexander’s shares are held by institutional investors. 26.4% of Alexander’s shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Mirvac Group and Alexander’s”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mirvac Group	N/A	N/A	N/A	$0.12	9.10
Alexander’s	$214.80 million	6.44	$28.22 million	$33.05	8.19

Alexander’s has higher revenue and earnings than Mirvac Group. Alexander’s is trading at a lower price-to-earnings ratio than Mirvac Group, indicating that it is currently the more affordable of the two stocks.

Summary

Alexander’s beats Mirvac Group on 12 of the 15 factors compared between the two stocks.

About Mirvac Group

Founded in 1972, Mirvac is an Australian Securities Exchange (ASX) top 50 company with an integrated asset creation and curation capability. For more than 50 years, we've dedicated ourselves to creating extraordinary urban places and experiences. We have over $35 billion of assets under management, together with a $12 billion commercial and mixed use development pipeline, and a $17 billion residential development pipeline, enabling us to deliver innovative and high-quality property for our customers, while driving long-term value for our securityholders.

About Alexander’s

Alexander’s, Inc. (NYSE: ALX) is a real estate investment trust (REIT), incorporated in Delaware, engaged in leasing, managing, developing and redeveloping its properties. All references to we, us, our, Company and Alexander’s refer to Alexander’s, Inc. and its consolidated subsidiaries. We are managed by, and our properties are leased and developed by, Vornado Realty Trust (Vornado) (NYSE: VNO). We have five properties in New York City.