Financial Survey: Kite Realty Group Trust (NYSE:KRG) vs. LXP Industrial Trust (NYSE:LXP)

LXP Industrial Trust (NYSE:LXP) and Kite Realty Group Trust (NYSE:KRG) are both mid-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for LXP Industrial Trust and Kite Realty Group Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LXP Industrial Trust	0	2	2	0	2.50
Kite Realty Group Trust	0	5	2	1	2.50

LXP Industrial Trust presently has a consensus target price of $11.33, suggesting a potential upside of 42.74%. Kite Realty Group Trust has a consensus target price of $27.88, suggesting a potential upside of 33.92%. Given LXP Industrial Trust’s higher probable upside, analysts clearly believe LXP Industrial Trust is more favorable than Kite Realty Group Trust.

Earnings and Valuation

This table compares LXP Industrial Trust and Kite Realty Group Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LXP Industrial Trust	$358.46 million	6.55	$44.53 million	$0.13	61.08
Kite Realty Group Trust	$841.84 million	5.43	$4.07 million	$0.02	1,040.75

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

Volatility and Risk

LXP Industrial Trust has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Kite Realty Group Trust has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.

Profitability

This table compares LXP Industrial Trust and Kite Realty Group Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LXP Industrial Trust	12.40%	2.15%	1.13%
Kite Realty Group Trust	0.48%	0.12%	0.06%

Insider & Institutional Ownership

93.5% of LXP Industrial Trust shares are held by institutional investors. Comparatively, 90.8% of Kite Realty Group Trust shares are held by institutional investors. 2.2% of LXP Industrial Trust shares are held by company insiders. Comparatively, 2.0% of Kite Realty Group Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

LXP Industrial Trust pays an annual dividend of $0.54 per share and has a dividend yield of 6.8%. Kite Realty Group Trust pays an annual dividend of $1.08 per share and has a dividend yield of 5.2%. LXP Industrial Trust pays out 415.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kite Realty Group Trust pays out 5,400.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LXP Industrial Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

LXP Industrial Trust beats Kite Realty Group Trust on 11 of the 15 factors compared between the two stocks.

About LXP Industrial Trust

LXP Industrial Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) focused on single-tenant industrial real estate investments across the United States. LXP seeks to expand its industrial portfolio through acquisitions, build-to-suit transactions, sale-leaseback transactions, development projects and other transactions.

About Kite Realty Group Trust

Kite Realty Group Trust (NYSE: KRG) is a real estate investment trust (REIT) headquartered in Indianapolis, IN that is one of the largest publicly traded owners and operators of open-air shopping centers and mixed-use assets. The Company’s primarily grocery-anchored portfolio is located in high-growth Sun Belt and select strategic gateway markets. The combination of necessity-based grocery-anchored neighborhood and community centers, along with vibrant mixed-use assets makes the KRG portfolio an ideal mix for both retailers and consumers. Publicly listed since 2004, KRG has nearly 60 years of experience in developing, constructing and operating real estate. Using operational, investment, development, and redevelopment expertise, KRG continuously optimizes its portfolio to maximize value and return to shareholders. As of December 31, 2023, the Company owned interests in 180 U.S. open-air shopping centers and mixed-use assets, comprising approximately 28.1 million square feet of gross leasable space.