Postal Realty Trust (NYSE:PSTL) & Plymouth Industrial REIT (NYSE:PLYM) Head-To-Head Review

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

Volatility and Risk

Plymouth Industrial REIT has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, Postal Realty Trust has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500.

Institutional & Insider Ownership

92.7% of Plymouth Industrial REIT shares are held by institutional investors. Comparatively, 57.9% of Postal Realty Trust shares are held by institutional investors. 1.3% of Plymouth Industrial REIT shares are held by insiders. Comparatively, 13.6% of Postal Realty Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Plymouth Industrial REIT	6.75%	2.84%	0.91%
Postal Realty Trust	5.82%	1.28%	0.69%

Valuation & Earnings

This table compares Plymouth Industrial REIT and Postal Realty Trust’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Plymouth Industrial REIT	$199.85 million	5.11	$13.66 million	$0.19	118.42
Postal Realty Trust	$63.71 million	5.06	$3.71 million	$0.11	130.10

Plymouth Industrial REIT has higher revenue and earnings than Postal Realty Trust. Plymouth Industrial REIT 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.

Dividends

Plymouth Industrial REIT pays an annual dividend of $0.90 per share and has a dividend yield of 4.0%. Postal Realty Trust pays an annual dividend of $0.96 per share and has a dividend yield of 6.7%. Plymouth Industrial REIT pays out 473.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Postal Realty Trust pays out 872.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Plymouth Industrial REIT has raised its dividend for 3 consecutive years and Postal Realty Trust has raised its dividend for 5 consecutive years. Postal Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Plymouth Industrial REIT and Postal Realty Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Plymouth Industrial REIT	1	1	4	0	2.50
Postal Realty Trust	0	1	0	0	2.00

Plymouth Industrial REIT currently has a consensus price target of $25.00, indicating a potential upside of 11.11%. Postal Realty Trust has a consensus price target of $16.50, indicating a potential upside of 15.30%. Given Postal Realty Trust’s higher probable upside, analysts plainly believe Postal Realty Trust is more favorable than Plymouth Industrial REIT.

Summary

Plymouth Industrial REIT beats Postal Realty Trust on 12 of the 17 factors compared between the two stocks.

About Plymouth Industrial REIT

Plymouth Industrial REIT, Inc. (NYSE: PLYM) is a full service, vertically integrated real estate investment company focused on the acquisition, ownership and management of single and multi-tenant industrial properties. Our mission is to provide tenants with cost effective space that is functional, flexible and safe.

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.