Analyzing Brandywine Realty Trust (NYSE:BDN) & NETSTREIT (NYSE:NTST)

NETSTREIT (NYSE:NTST) and Brandywine Realty Trust (NYSE:BDN) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.

Profitability

This table compares NETSTREIT and Brandywine Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NETSTREIT	3.32%	0.39%	0.25%
Brandywine Realty Trust	-60.08%	-24.59%	-8.33%

Institutional & Insider Ownership

87.3% of Brandywine Realty Trust shares are held by institutional investors. 0.5% of NETSTREIT shares are held by insiders. Comparatively, 2.6% of Brandywine Realty Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for NETSTREIT and Brandywine Realty Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NETSTREIT	0	4	5	1	2.70
Brandywine Realty Trust	0	2	1	0	2.33

NETSTREIT presently has a consensus price target of $18.00, suggesting a potential upside of 17.80%. Brandywine Realty Trust has a consensus price target of $5.83, suggesting a potential upside of 14.72%. Given NETSTREIT’s stronger consensus rating and higher probable upside, equities analysts clearly believe NETSTREIT is more favorable than Brandywine Realty Trust.

Volatility & Risk

NETSTREIT has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Brandywine Realty Trust has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.

Dividends

NETSTREIT pays an annual dividend of $0.84 per share and has a dividend yield of 5.5%. Brandywine Realty Trust pays an annual dividend of $0.60 per share and has a dividend yield of 11.8%. NETSTREIT pays out 1,200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brandywine Realty Trust pays out -33.3% of its earnings in the form of a dividend. Brandywine Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares NETSTREIT and Brandywine Realty Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NETSTREIT	$131.90 million	8.96	$6.84 million	$0.07	218.29
Brandywine Realty Trust	$514.65 million	1.71	-$196.79 million	($1.80)	-2.83

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

Summary

NETSTREIT beats Brandywine Realty Trust on 11 of the 17 factors compared between the two stocks.

About NETSTREIT

NETSTREIT Corp. is an internally managed real estate investment trust (REIT) based in Dallas, Texas that specializes in acquiring single-tenant net lease retail properties nationwide. The growing portfolio consists of high-quality properties leased to e-commerce resistant tenants with healthy balance sheets. Led by a management team of seasoned commercial real estate executives, NETSTREIT’s strategy is to create the highest quality net lease retail portfolio in the country with the goal of generating consistent cash flows and dividends for its investors.

About Brandywine Realty Trust

Brandywine Realty Trust (NYSE: BDN) is one of the largest, publicly traded, full-service, integrated real estate companies in the United States with a core focus in the Philadelphia and Austin markets. Organized as a real estate investment trust (REIT), we own, develop, lease and manage an urban, town center and transit-oriented portfolio comprising 160 properties and 22.6 million square feet as of September 30, 2023 which excludes assets held for sale. Our purpose is to shape, connect and inspire the world around us through our expertise, the relationships we foster, the communities in which we live and work, and the history we build together.