Head to Head Analysis: Ladder Capital (NYSE:LADR) & Postal Realty Trust (NYSE:PSTL)

Postal Realty Trust (NYSE:PSTLGet Rating) and Ladder Capital (NYSE:LADRGet Rating) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Postal Realty Trust 6.11% 1.14% 0.72%
Ladder Capital 22.36% 6.06% 1.59%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Postal Realty Trust and Ladder Capital, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Postal Realty Trust 0 2 3 0 2.60
Ladder Capital 0 0 2 0 3.00

Postal Realty Trust presently has a consensus price target of $19.50, suggesting a potential upside of 22.33%. Ladder Capital has a consensus price target of $13.50, suggesting a potential upside of 21.73%. Given Postal Realty Trust’s higher probable upside, equities analysts clearly believe Postal Realty Trust is more favorable than Ladder Capital.

Valuation & Earnings

This table compares Postal Realty Trust and Ladder Capital’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Postal Realty Trust $39.94 million 7.50 $2.06 million $0.13 122.62
Ladder Capital $357.85 million 3.93 $56.52 million $0.80 13.86

Ladder Capital has higher revenue and earnings than Postal Realty Trust. Ladder Capital 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.

Institutional & Insider Ownership

68.2% of Postal Realty Trust shares are held by institutional investors. Comparatively, 60.2% of Ladder Capital shares are held by institutional investors. 13.4% of Postal Realty Trust shares are held by insiders. Comparatively, 11.4% of Ladder Capital shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Postal Realty Trust pays an annual dividend of $0.93 per share and has a dividend yield of 5.8%. Ladder Capital pays an annual dividend of $0.88 per share and has a dividend yield of 7.9%. Postal Realty Trust pays out 715.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ladder Capital pays out 110.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Postal Realty Trust has increased its dividend for 3 consecutive years and Ladder Capital has increased its dividend for 1 consecutive years. Ladder Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

Postal Realty Trust has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Ladder Capital has a beta of 1.88, meaning that its share price is 88% more volatile than the S&P 500.

Summary

Ladder Capital beats Postal Realty Trust on 10 of the 17 factors compared between the two stocks.

About Postal Realty Trust

(Get Rating)

Postal Realty Trust, Inc. is an internally managed real estate investment trust that owns and manages over 1,000 properties leased to the USPS. The Company believes it is one of the largest owners and managers of properties leased to the USPS.

About Ladder Capital

(Get Rating)

The Loans segment originates conduit first mortgage loans that are secured by cash-flowing commercial real estate; and originates and invests in balance sheet first mortgage loans secured by commercial real estate properties that are undergoing transition, including lease-up, sell-out, and renovation or repositioning. It also invests in note purchase financings, subordinated debt, mezzanine debt, and other structured finance products related to commercial real estate. The Securities segment invests in commercial mortgage-backed securities and the U.S. Agency Securities. This segment also invests in corporate bonds and equity securities. The Real Estate segment owns and invests in a portfolio of commercial and residential real estate properties, such as leased properties, office buildings, student housing portfolios, hotels, industrial buildings, shopping center, and condominium units. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Ladder Capital Corp was founded in 2008 and is headquartered in New York, New York.

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