Analyzing The GPT Group (OTCMKTS:GPTGF) & Alexander’s (NYSE:ALX)

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

Dividends

The GPT Group pays an annual dividend of $0.26 per share and has a dividend yield of 7.6%. Alexander’s pays an annual dividend of $18.00 per share and has a dividend yield of 6.6%. The GPT Group pays out 80.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alexander’s pays out 54.5% of its earnings in the form of a dividend. Alexander’s has raised its dividend for 1 consecutive years.

Analyst Ratings

This is a summary of current recommendations for The GPT Group and Alexander’s, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The GPT 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, indicating a potential downside of 22.56%. Given Alexander’s’ stronger consensus rating and higher possible upside, analysts plainly believe Alexander’s is more favorable than The GPT Group.

Valuation & Earnings

This table compares The GPT Group and Alexander’s”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The GPT Group	N/A	N/A	N/A	$0.32	10.67
Alexander’s	$213.18 million	6.56	$28.22 million	$33.05	8.28

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

Profitability

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

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

Insider & Institutional Ownership

31.8% of The GPT Group shares are owned by institutional investors. Comparatively, 32.0% of Alexander’s shares are owned by institutional investors. 26.4% of Alexander’s shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Alexander’s beats The GPT Group on 13 of the 15 factors compared between the two stocks.

About The GPT Group

GPT is a vertically integrated diversified property group that owns and actively manages a portfolio of high quality Australian retail, office and logistics assets, with assets under management of $32.4 billion. The Group utilises its real estate management platform to enhance returns through property development and funds management.

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.