Critical Contrast: Cromwell Property Group (OTC:CMWCF) and Postal Realty Trust (NYSE:PSTL)

Postal Realty Trust (NYSE:PSTL) and Cromwell Property Group (OTC:CMWCF) are both real estate companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.

Insider and Institutional Ownership

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

Analyst Ratings

This is a summary of recent recommendations for Postal Realty Trust and Cromwell Property Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Postal Realty Trust	0	1	0	0	2.00
Cromwell Property Group	0	0	0	0	N/A

Postal Realty Trust currently has a consensus price target of $16.50, indicating a potential upside of 22.40%. Given Postal Realty Trust’s higher probable upside, equities analysts plainly believe Postal Realty Trust is more favorable than Cromwell Property Group.

Earnings and Valuation

This table compares Postal Realty Trust and Cromwell Property Group’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Postal Realty Trust	$63.71 million	4.77	$3.71 million	$0.11	122.74
Cromwell Property Group	N/A	N/A	N/A	$0.11	2.64

Postal Realty Trust has higher revenue and earnings than Cromwell Property Group. Cromwell Property Group 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

Postal Realty Trust pays an annual dividend of $0.96 per share and has a dividend yield of 7.1%. Cromwell Property Group pays an annual dividend of $0.02 per share and has a dividend yield of 6.9%. 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. Cromwell Property Group pays out 18.2% of its earnings in the form of a dividend. 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.

Profitability

This table compares Postal Realty Trust and Cromwell Property Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Postal Realty Trust	5.82%	1.28%	0.69%
Cromwell Property Group	N/A	N/A	N/A

Summary

Postal Realty Trust beats Cromwell Property Group on 11 of the 12 factors compared between the two stocks.

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.

About Cromwell Property Group

Cromwell Property Group (ASX:CMW) is a real estate investor and fund manager with operations on three continents and a global investor base. Cromwell is included in the S&P/ASX200. As at 30 June 2022, Cromwell had a market capitalisation of $2.0 billion, an Australian investment portfolio valued at $3.0 billion and total assets under management of $12.0 billion across Australia, New Zealand and Europe.