Whitestone REIT (NYSE:WSR – Get Free Report) and American Strategic Investment (NYSE:NYC – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, analyst recommendations and dividends.
Institutional and Insider Ownership
69.5% of Whitestone REIT shares are held by institutional investors. Comparatively, 48.0% of American Strategic Investment shares are held by institutional investors. 5.5% of Whitestone REIT shares are held by company insiders. Comparatively, 1.4% of American Strategic Investment shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Whitestone REIT and American Strategic Investment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Whitestone REIT | 13.97% | 4.98% | 1.88% |
| American Strategic Investment | -334.85% | -17.68% | -4.58% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Whitestone REIT | $155.51 million | 4.73 | $19.18 million | $0.71 | 20.36 |
| American Strategic Investment | $61.57 million | 0.44 | -$105.92 million | ($55.88) | -0.18 |
Whitestone REIT has higher revenue and earnings than American Strategic Investment. American Strategic Investment is trading at a lower price-to-earnings ratio than Whitestone REIT, indicating that it is currently the more affordable of the two stocks.
Dividends
Whitestone REIT pays an annual dividend of $0.54 per share and has a dividend yield of 3.7%. American Strategic Investment pays an annual dividend of $0.40 per share and has a dividend yield of 3.9%. Whitestone REIT pays out 76.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Strategic Investment pays out -0.7% of its earnings in the form of a dividend. American Strategic Investment is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility & Risk
Whitestone REIT has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, American Strategic Investment has a beta of 0.13, indicating that its share price is 87% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Whitestone REIT and American Strategic Investment, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Whitestone REIT | 0 | 0 | 2 | 0 | 3.00 |
| American Strategic Investment | 0 | 0 | 0 | 0 | 0.00 |
Whitestone REIT presently has a consensus price target of $16.00, indicating a potential upside of 10.69%. Given Whitestone REIT’s stronger consensus rating and higher possible upside, research analysts clearly believe Whitestone REIT is more favorable than American Strategic Investment.
Summary
Whitestone REIT beats American Strategic Investment on 14 of the 16 factors compared between the two stocks.
About Whitestone REIT
Whitestone REIT (NYSE: WSR) is a community-centered real estate investment trust (REIT) that acquires, owns, operates, and develops open-air, retail centers located in some of the fastest growing markets in the country: Phoenix, Austin, Dallas-Fort Worth, Houston and San Antonio. Our centers are convenience focused: merchandised with a mix of service-oriented tenants providing food (restaurants and grocers), self-care (health and fitness), services (financial and logistics), education and entertainment to the surrounding communities. The Company believes its strong community connections and deep tenant relationships are key to the success of its current centers and its acquisition strategy.
About American Strategic Investment
American Strategic Investment Co. (NYSE: NYC) owns a portfolio of high-quality commercial real estate located within the five boroughs of New York City.
Receive News & Ratings for Whitestone REIT Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Whitestone REIT and related companies with MarketBeat.com's FREE daily email newsletter.
