Excel Trust (NYSE: EXL) and Monmouth Real Estate Investment Corporation (NYSE:MNR) are both small-cap commercial reits – nec companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Excel Trust and Monmouth Real Estate Investment Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Excel Trust 0 0 0 0 N/A
Monmouth Real Estate Investment Corporation 0 1 4 0 2.80

Monmouth Real Estate Investment Corporation has a consensus price target of $16.75, indicating a potential downside of 2.62%. Given Monmouth Real Estate Investment Corporation’s higher possible upside, analysts plainly believe Monmouth Real Estate Investment Corporation is more favorable than Excel Trust.

Volatility & Risk

Excel Trust has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, Monmouth Real Estate Investment Corporation has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500.

Insider and Institutional Ownership

62.2% of Monmouth Real Estate Investment Corporation shares are held by institutional investors. 5.3% of Monmouth Real Estate Investment Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Monmouth Real Estate Investment Corporation pays an annual dividend of $0.64 per share and has a dividend yield of 3.7%. Excel Trust does not pay a dividend. Monmouth Real Estate Investment Corporation pays out 213.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Excel Trust has raised its dividend for 7 consecutive years and Monmouth Real Estate Investment Corporation has raised its dividend for 2 consecutive years.

Valuation and Earnings

This table compares Excel Trust and Monmouth Real Estate Investment Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Excel Trust N/A N/A N/A $0.26 60.92
Monmouth Real Estate Investment Corporation $81.59 million 15.30 $32.49 million $0.30 57.33

Monmouth Real Estate Investment Corporation has higher revenue and earnings than Excel Trust. Monmouth Real Estate Investment Corporation is trading at a lower price-to-earnings ratio than Excel Trust, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Excel Trust and Monmouth Real Estate Investment Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Excel Trust 9.45% 0.65% 0.88%
Monmouth Real Estate Investment Corporation 32.02% 7.91% 2.69%

Summary

Monmouth Real Estate Investment Corporation beats Excel Trust on 11 of the 13 factors compared between the two stocks.

Excel Trust Company Profile

Excel Trust, Inc. is a real estate investment trust (REIT). The Company is a vertically integrated, self-administered, self-managed real estate firm with the principal objective of acquiring, financing, developing, leasing, owning and managing community and power centers, grocery anchored neighborhood centers and freestanding retail properties. It operates through three segments: retail properties, multi-family properties and office properties. It owns approximately 38 consolidated retail operating properties with a total of approximately 7.2 million square feet of gross leasable area (GLA). The multi-family segment consists of apartment units at one retail property, West Broad Village, which is located in Richmond, Virginia. The office segment consists of two properties, Excel Centre, a portion of which is utilized as its headquarters, and the Promenade Corporate Center. These office properties total approximately 338,339 square feet of GLA.

Monmouth Real Estate Investment Corporation Company Profile

Monmouth Real Estate Investment Corporation is a real estate investment trust (REIT). The Company’s primary business is the ownership of real estate. Its investment focus is to own single tenant, industrial buildings and leased to investment-grade tenants or their subsidiaries on long-term net leases. In addition, the Company owns a portfolio of REIT investment securities. Its assets are situated near airports, transportation hubs and manufacturing plants. The Company’s featured properties include ULTA Cosmetics, Milwaukee Tool, Beam Suntory, FedEx Supply Chain Services, Coca-Cola, Best Buy, International Paper, Home Depot, FedEx Ground, Actavis, Anheuser-Busch, United Technologies, Kellogg’s, Siemens, National Oilwell and Cardinal Health. The Company’s property portfolio consists of approximately 107 properties located in over 30 states, containing a total of approximately 18.6 million rentable square feet.

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