Analyzing Champion Real Estate Investment Trust (OTCMKTS:CMPNF) & NETSTREIT (NYSE:NTST)

NETSTREIT (NYSE:NTST) and Champion Real Estate Investment Trust (OTCMKTS:CMPNF) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.

Dividends

NETSTREIT pays an annual dividend of $0.84 per share and has a dividend yield of 5.4%. Champion Real Estate Investment Trust pays an annual dividend of $0.11 per share and has a dividend yield of 44.7%. NETSTREIT pays out 933.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Champion Real Estate Investment Trust pays out -149.0% of its earnings in the form of a dividend. Champion Real Estate Investment Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares NETSTREIT and Champion Real Estate Investment Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NETSTREIT	$137.21 million	8.40	$6.84 million	$0.09	174.44
Champion Real Estate Investment Trust	N/A	N/A	N/A	($0.07)	-3.33

NETSTREIT has higher revenue and earnings than Champion Real Estate Investment Trust. Champion Real Estate Investment Trust is trading at a lower price-to-earnings ratio than NETSTREIT, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares NETSTREIT and Champion Real Estate Investment 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%
Champion Real Estate Investment Trust	N/A	N/A	N/A

Institutional and Insider Ownership

6.7% of Champion Real Estate Investment Trust shares are owned by institutional investors. 0.5% of NETSTREIT shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for NETSTREIT and Champion Real Estate Investment Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NETSTREIT	0	4	5	1	2.70
Champion Real Estate Investment Trust	0	0	0	0	N/A

NETSTREIT presently has a consensus price target of $17.88, suggesting a potential upside of 13.85%. Given NETSTREIT’s higher possible upside, analysts clearly believe NETSTREIT is more favorable than Champion Real Estate Investment Trust.

Summary

NETSTREIT beats Champion Real Estate Investment Trust on 10 of the 13 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 Champion Real Estate Investment Trust

Champion Real Estate Investment Trust is a trust formed to own and invest in income producing office and retail properties. The Trust focuses on Grade A commercial properties in prime locations. It currently offers investors direct exposure to nearly 3 million sq. ft. of prime office and retail floor area. These include two Hong Kong landmark properties, Three Garden Road and Langham Place, as well as a joint venture stake in 66 Shoe Lane in Central London. Since 2015, the Trust has been included in the Constituent of Hang Seng Corporate Sustainability Benchmark Index of Hang Seng Indexes.