Head to Head Analysis: Easterly Government Properties (NYSE:DEA) and Postal Realty Trust (NYSE:PSTL)

Postal Realty Trust (NYSE:PSTL – Get Free Report) and Easterly Government Properties (NYSE:DEA – Get Free Report) are both small-cap real estate companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Institutional & Insider Ownership

57.9% of Postal Realty Trust shares are owned by institutional investors. Comparatively, 86.5% of Easterly Government Properties shares are owned by institutional investors. 12.5% of Postal Realty Trust shares are owned by insiders. Comparatively, 6.5% of Easterly Government Properties shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Postal Realty Trust and Easterly Government Properties’ net margins, return on equity and return on assets.

Valuation & Earnings

This table compares Postal Realty Trust and Easterly Government Properties”s gross revenue, earnings per share and valuation.

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

Dividends

Postal Realty Trust pays an annual dividend of $0.98 per share and has a dividend yield of 4.1%. Easterly Government Properties pays an annual dividend of $1.80 per share and has a dividend yield of 7.7%. Postal Realty Trust pays out 181.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Easterly Government Properties pays out 857.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Postal Realty Trust has increased its dividend for 3 consecutive years.

Volatility & Risk

Postal Realty Trust has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Easterly Government Properties has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Postal Realty Trust and Easterly Government Properties, as reported by MarketBeat.com.

Postal Realty Trust presently has a consensus target price of $25.38, indicating a potential upside of 5.41%. Easterly Government Properties has a consensus target price of $25.06, indicating a potential upside of 7.68%. Given Easterly Government Properties’ higher probable upside, analysts clearly believe Easterly Government Properties is more favorable than Postal Realty Trust.

Summary

Postal Realty Trust beats Easterly Government Properties on 11 of the 17 factors compared between the two stocks.

About Postal Realty Trust

(Get Free Report)

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.

About Easterly Government Properties

(Get Free Report)

Easterly Government Properties, Inc. (NYSE: DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. Easterly’s experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased to such agencies either directly or through the U.S. General Services Administration (GSA).