CTO Realty Growth (NYSE:CTO) and NETSTREIT (NYSE:NTST) Head-To-Head Review

CTO Realty Growth (NYSE:CTO) and NETSTREIT (NYSE:NTST) are both real estate companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, earnings, analyst recommendations, valuation and institutional ownership.

Volatility and Risk

CTO Realty Growth has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, NETSTREIT has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for CTO Realty Growth and NETSTREIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CTO Realty Growth	0	2	3	2	3.00
NETSTREIT	0	2	12	0	2.86

CTO Realty Growth currently has a consensus price target of $24.00, suggesting a potential upside of 18.21%. NETSTREIT has a consensus price target of $21.67, suggesting a potential upside of 17.14%. Given CTO Realty Growth’s stronger consensus rating and higher possible upside, equities research analysts clearly believe CTO Realty Growth is more favorable than NETSTREIT.

Dividends

CTO Realty Growth pays an annual dividend of $1.52 per share and has a dividend yield of 7.5%. NETSTREIT pays an annual dividend of $0.90 per share and has a dividend yield of 4.9%. CTO Realty Growth pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NETSTREIT pays out 409.1% 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 raised its dividend for 1 consecutive years. CTO Realty Growth is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares CTO Realty Growth and NETSTREIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CTO Realty Growth	26.12%	7.15%	3.26%
NETSTREIT	9.18%	1.33%	0.74%

Valuation & Earnings

This table compares CTO Realty Growth and NETSTREIT”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CTO Realty Growth	$149.54 million	5.26	$10.09 million	$1.14	17.81
NETSTREIT	$195.01 million	11.92	$6.90 million	$0.22	84.10

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

Institutional & Insider Ownership

67.2% of CTO Realty Growth shares are owned by institutional investors. 4.5% of CTO Realty Growth shares are owned by insiders. Comparatively, 0.7% of NETSTREIT shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

CTO Realty Growth beats NETSTREIT on 12 of the 18 factors compared between the two stocks.

About CTO Realty Growth

CTO Realty Growth, Inc. is a real estate investment trust that acquires, owns and manages income-producing commercial properties. Its portfolio is focused primarily on open-air retail and mixed-use properties, including shopping centers and other retail-oriented real estate. The company invests in markets across the United States, with an emphasis on high-growth Sun Belt locations. It also holds an interest in Alpine Income Property Trust, a separately traded real estate investment trust focused on commercial net-lease properties.

About NETSTREIT

NETSTREIT is a Dallas-based real estate investment trust (REIT) that owns and manages single-tenant retail properties leased to businesses across the United States. Its portfolio focuses on retailers that provide everyday goods and services, including grocery, convenience, pharmacy and home-improvement businesses. The company primarily uses net leases, under which tenants generally pay some or all property expenses in addition to rent. NETSTREIT was formed in 2019 and became a publicly traded company in 2020.