CTO Realty Growth (NYSE:CTO) & Peakstone Realty Trust (NYSE:PKST) Financial Review

Peakstone Realty Trust (NYSE:PKSTGet Free Report) and CTO Realty Growth (NYSE:CTOGet Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.

Dividends

Peakstone Realty Trust pays an annual dividend of $0.90 per share and has a dividend yield of 8.0%. CTO Realty Growth pays an annual dividend of $1.52 per share and has a dividend yield of 7.7%. Peakstone Realty Trust pays out -76.3% of its earnings in the form of a dividend. CTO Realty Growth pays out 257.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Peakstone Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Peakstone Realty Trust and CTO Realty Growth’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Peakstone Realty Trust -18.26% -3.61% -1.59%
CTO Realty Growth 17.10% 4.04% 1.92%

Insider & Institutional Ownership

39.0% of Peakstone Realty Trust shares are owned by institutional investors. Comparatively, 67.2% of CTO Realty Growth shares are owned by institutional investors. 0.5% of Peakstone Realty Trust shares are owned by company insiders. Comparatively, 5.3% of CTO Realty Growth shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Peakstone Realty Trust and CTO Realty Growth”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Peakstone Realty Trust $254.28 million 1.62 -$550.58 million ($1.18) -9.59
CTO Realty Growth $109.12 million 5.44 $5.53 million $0.59 33.54

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

Risk and Volatility

Peakstone Realty Trust has a beta of 2.59, indicating that its share price is 159% more volatile than the S&P 500. Comparatively, CTO Realty Growth has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Peakstone Realty Trust and CTO Realty Growth, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Peakstone Realty Trust 0 1 1 0 2.50
CTO Realty Growth 0 0 2 2 3.50

Peakstone Realty Trust presently has a consensus price target of $15.00, suggesting a potential upside of 32.51%. CTO Realty Growth has a consensus price target of $21.00, suggesting a potential upside of 6.11%. Given Peakstone Realty Trust’s higher probable upside, equities research analysts plainly believe Peakstone Realty Trust is more favorable than CTO Realty Growth.

Summary

CTO Realty Growth beats Peakstone Realty Trust on 12 of the 17 factors compared between the two stocks.

About Peakstone Realty Trust

(Get Free Report)

Peakstone Realty Trust (NYSE: PKST) is an internally managed, real estate investment trust (REIT) that owns and operates a high-quality, newer-vintage portfolio of predominantly single-tenant industrial and office properties. These assets are generally leased to creditworthy tenants under long-term net lease agreements with contractual rent escalations. As of March 31, 2023, Peakstone's wholly-owned portfolio consists of 19 million square feet across 24 states in primarily high-growth, strategic coastal and sunbelt markets.

About CTO Realty Growth

(Get Free Report)

CTO Realty Growth, Inc. is a publicly traded real estate investment trust that owns and operates a portfolio of high-quality, retail-based properties located primarily in higher growth markets in the United States. CTO also externally manages and owns a meaningful interest in Alpine Income Property Trust, Inc. (NYSE: PINE), a publicly traded net lease REIT.

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