Analyzing NETSTREIT (NYSE:NTST) & One Liberty Properties (NYSE:OLP)

NETSTREIT (NYSE:NTSTGet Free Report) and One Liberty Properties (NYSE:OLPGet Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, dividends, institutional ownership, profitability and analyst recommendations.

Profitability

This table compares NETSTREIT and One Liberty Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NETSTREIT 3.54% 0.51% 0.29%
One Liberty Properties 26.20% 8.40% 3.12%

Analyst Ratings

This is a breakdown of current recommendations and price targets for NETSTREIT and One Liberty Properties, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NETSTREIT 0 2 11 0 2.85
One Liberty Properties 1 0 1 0 2.00

NETSTREIT currently has a consensus target price of $21.50, suggesting a potential upside of 8.26%. One Liberty Properties has a consensus target price of $27.50, suggesting a potential upside of 21.19%. Given One Liberty Properties’ higher probable upside, analysts clearly believe One Liberty Properties is more favorable than NETSTREIT.

Insider & Institutional Ownership

36.2% of One Liberty Properties shares are owned by institutional investors. 0.6% of NETSTREIT shares are owned by company insiders. Comparatively, 25.4% of One Liberty Properties shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

NETSTREIT has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, One Liberty Properties has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.

Valuation & Earnings

This table compares NETSTREIT and One Liberty Properties”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NETSTREIT $181.38 million 10.63 $6.90 million $0.09 220.66
One Liberty Properties $97.23 million 5.09 $25.47 million $1.17 19.39

One Liberty Properties has lower revenue, but higher earnings than NETSTREIT. One Liberty Properties is trading at a lower price-to-earnings ratio than NETSTREIT, indicating that it is currently the more affordable of the two stocks.

Dividends

NETSTREIT pays an annual dividend of $0.88 per share and has a dividend yield of 4.4%. One Liberty Properties pays an annual dividend of $1.80 per share and has a dividend yield of 7.9%. NETSTREIT pays out 977.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. One Liberty Properties pays out 153.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NETSTREIT has increased its dividend for 1 consecutive years. One Liberty Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

One Liberty Properties beats NETSTREIT on 11 of the 17 factors compared between the two stocks.

About NETSTREIT

(Get Free Report)

NETSTREIT Corp. is an internally managed real estate investment trust (REIT) based in Dallas, Texas that specializes in acquiring single-tenant net lease retail properties nationwide. The growing portfolio consists of high-quality properties leased to e-commerce resistant tenants with healthy balance sheets. Led by a management team of seasoned commercial real estate executives, NETSTREIT’s strategy is to create the highest quality net lease retail portfolio in the country with the goal of generating consistent cash flows and dividends for its investors.

About One Liberty Properties

(Get Free Report)

One Liberty Properties, Inc. is a real estate investment trust, which engages in acquisition, ownership, and management of the geographically diversified portfolio consisting primarily of industrial, retail, restaurant, health and fitness, and theater properties, many of which are subject to long-term leases. The properties in the firm’s portfolio include net leases, long-term lease, and scheduled rent increases. The company was founded in December 1982 and is headquartered in Great Neck, NY.

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