Lexington Realty Trust (NYSE:LXP) and Spirit Realty Capital (NYSE:SRC) are both mid-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.
Analyst Ratings
This is a breakdown of current recommendations for Lexington Realty Trust and Spirit Realty Capital, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Lexington Realty Trust | 0 | 0 | 2 | 0 | 3.00 |
Spirit Realty Capital | 0 | 5 | 6 | 0 | 2.55 |
Lexington Realty Trust presently has a consensus target price of $12.25, indicating a potential upside of 15.13%. Spirit Realty Capital has a consensus target price of $40.50, indicating a potential downside of 4.82%. Given Lexington Realty Trust's stronger consensus rating and higher probable upside, equities research analysts plainly believe Lexington Realty Trust is more favorable than Spirit Realty Capital.
Risk and Volatility
Lexington Realty Trust has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Spirit Realty Capital has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.
Profitability
This table compares Lexington Realty Trust and Spirit Realty Capital's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Lexington Realty Trust | 49.72% | 9.57% | 4.87% |
Spirit Realty Capital | 0.46% | 0.07% | 0.04% |
Dividends
Lexington Realty Trust pays an annual dividend of $0.43 per share and has a dividend yield of 4.0%. Spirit Realty Capital pays an annual dividend of $2.50 per share and has a dividend yield of 5.9%. Lexington Realty Trust pays out 53.8% of its earnings in the form of a dividend. Spirit Realty Capital pays out 74.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Lexington Realty Trust has raised its dividend for 1 consecutive years and Spirit Realty Capital has raised its dividend for 1 consecutive years.
Valuation and Earnings
This table compares Lexington Realty Trust and Spirit Realty Capital's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Lexington Realty Trust | $325.97 million | 9.06 | $279.91 million | $0.80 | 13.30 |
Spirit Realty Capital | $516.43 million | 9.46 | $175.27 million | $3.34 | 12.74 |
Lexington Realty Trust has higher earnings, but lower revenue than Spirit Realty Capital. Spirit Realty Capital is trading at a lower price-to-earnings ratio than Lexington Realty Trust, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
90.4% of Lexington Realty Trust shares are held by institutional investors. Comparatively, 98.7% of Spirit Realty Capital shares are held by institutional investors. 2.1% of Lexington Realty Trust shares are held by insiders. Comparatively, 0.9% of Spirit Realty Capital shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
Lexington Realty Trust beats Spirit Realty Capital on 9 of the 16 factors compared between the two stocks.