Reviewing Postal Realty Trust (NYSE:PSTL) and Rexford Industrial Realty (NYSE:REXR)

Rexford Industrial Realty (NYSE:REXR) and Postal Realty Trust (NYSE:PSTL) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Institutional and Insider Ownership

99.5% of Rexford Industrial Realty shares are held by institutional investors. Comparatively, 57.9% of Postal Realty Trust shares are held by institutional investors. 1.2% of Rexford Industrial Realty shares are held by company insiders. Comparatively, 13.6% of Postal Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Rexford Industrial Realty and Postal Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rexford Industrial Realty	30.40%	3.35%	2.29%
Postal Realty Trust	4.93%	1.10%	0.58%

Volatility and Risk

Rexford Industrial Realty has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Postal Realty Trust has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Rexford Industrial Realty and Postal Realty Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rexford Industrial Realty	1	6	3	0	2.20
Postal Realty Trust	0	1	1	0	2.50

Rexford Industrial Realty presently has a consensus target price of $51.45, suggesting a potential upside of 18.70%. Postal Realty Trust has a consensus target price of $15.75, suggesting a potential upside of 10.06%. Given Rexford Industrial Realty’s higher probable upside, research analysts plainly believe Rexford Industrial Realty is more favorable than Postal Realty Trust.

Dividends

Rexford Industrial Realty pays an annual dividend of $1.67 per share and has a dividend yield of 3.9%. Postal Realty Trust pays an annual dividend of $0.96 per share and has a dividend yield of 6.7%. Rexford Industrial Realty pays out 153.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Postal Realty Trust pays out 960.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares Rexford Industrial Realty and Postal Realty Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rexford Industrial Realty	$903.94 million	10.45	$238.02 million	$1.09	39.77
Postal Realty Trust	$68.45 million	4.74	$3.71 million	$0.10	143.10

Rexford Industrial Realty has higher revenue and earnings than Postal Realty Trust. Rexford Industrial Realty is trading at a lower price-to-earnings ratio than Postal Realty Trust, indicating that it is currently the more affordable of the two stocks.

Summary

Rexford Industrial Realty beats Postal Realty Trust on 12 of the 16 factors compared between the two stocks.

About Rexford Industrial Realty

Rexford Industrial creates value by investing in, operating and redeveloping industrial properties throughout infill Southern California, the world's fourth largest industrial market and consistently the highest-demand with lowest-supply major market in the nation. The Company's highly differentiated strategy enables internal and external growth opportunities through its proprietary value creation and asset management capabilities. Rexford Industrial's high-quality, irreplaceable portfolio comprises 371 properties with approximately 45.0 million rentable square feet occupied by a stable and diverse tenant base. Structured as a real estate investment trust (REIT) listed on the New York Stock Exchange under the ticker "REXR," Rexford Industrial is an S&P MidCap 400 Index member.

About Postal Realty Trust

Postal Realty Trust, Inc. (NYSE: PSTL) is an internally managed real estate investment trust that owns properties primarily leased to the United States Postal Service ("USPS"). PSTL is focused on acquiring the network of USPS properties, which provide a critical element of the nation's logistics infrastructure that facilitates cost effective and efficient last-mile delivery solutions. As of December 31, 2023, PSTL owned 1,509 properties (including two properties accounted for as financing leases) located in 49 states and one territory comprising approximately 5.9 million net leasable interior square feet. Subsequent to quarter-end and through February 23, 2024, PSTL closed on eight additional properties comprising approximately 33,000 net leasable interior square feet.