Vornado Realty Trust (NYSE: VNO) and Columbia Property Trust (NYSE:CXP) are both mid-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Earnings and Valuation
This table compares Vornado Realty Trust and Columbia Property Trust’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Vornado Realty Trust||$2.70 billion||5.46||$1.40 billion||$4.64||16.77|
|Columbia Property Trust||$376.05 million||6.84||$171.48 million||$1.14||18.62|
Vornado Realty Trust has higher revenue and earnings than Columbia Property Trust. Vornado Realty Trust is trading at a lower price-to-earnings ratio than Columbia Property Trust, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for Vornado Realty Trust and Columbia Property Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Vornado Realty Trust||0||3||7||0||2.70|
|Columbia Property Trust||0||3||4||0||2.57|
Vornado Realty Trust currently has a consensus price target of $94.10, indicating a potential upside of 20.95%. Columbia Property Trust has a consensus price target of $23.80, indicating a potential upside of 12.11%. Given Vornado Realty Trust’s stronger consensus rating and higher possible upside, equities analysts clearly believe Vornado Realty Trust is more favorable than Columbia Property Trust.
This table compares Vornado Realty Trust and Columbia Property Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Vornado Realty Trust||37.96%||4.51%||1.39%|
|Columbia Property Trust||37.27%||5.55%||3.30%|
Insider and Institutional Ownership
86.0% of Vornado Realty Trust shares are held by institutional investors. Comparatively, 64.8% of Columbia Property Trust shares are held by institutional investors. 9.8% of Vornado Realty Trust shares are held by company insiders. Comparatively, 0.5% of Columbia Property Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
Vornado Realty Trust has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Columbia Property Trust has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.
Vornado Realty Trust pays an annual dividend of $2.40 per share and has a dividend yield of 3.1%. Columbia Property Trust pays an annual dividend of $0.80 per share and has a dividend yield of 3.8%. Vornado Realty Trust pays out 51.7% of its earnings in the form of a dividend. Columbia Property Trust pays out 70.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Vornado Realty Trust beats Columbia Property Trust on 10 of the 16 factors compared between the two stocks.
About Vornado Realty Trust
Vornado Realty Trust is a real estate investment trust (REIT). The Company conducts its business through Vornado Realty L.P. (the Operating Partnership). The Company operates through two segments: New York and Washington, DC. As of December 31, 2016, the Company’s New York segment consisted of 28.3 million square feet in 86 properties. Its properties include 1290 Avenue of the Americas, Two Penn Plaza, 770 Broadway and 90 Park Avenue. As of December 31, 2016, the Company’s Washington, DC segment consisted of 58 properties aggregating 14.7 million square feet, including 11.1 million square feet of office space in 44 properties, nine residential properties containing 3,156 units and a hotel property. Its properties include 2001 Jefferson Davis Highway, 223 23rd Street, 2221 South Clark Street and 1700 M Street. The Company’s interests in properties are held by the Operating Partnership. As of December 31, 2016, the Company owned the 3.7 million square foot Mart (theMart) in Chicago.
About Columbia Property Trust
Columbia Property Trust, Inc. operates as a real estate investment trust (REIT), which owns and operates commercial real estate properties. The Company’s primary objective is to generate long-term shareholder returns from a combination of steadily growing cash flows and appreciation in its net asset values, through the acquisition and ownership of office buildings located principally in high-barrier-to-entry markets. The Company’s segments include New York, San Francisco, Atlanta, Washington, D.C., Boston, Los Angeles and all other office markets. The all other office markets segment consists of properties in similar, low-barrier to entry geographic locations, in which the Company does not plan to make further investments. The Company conducts its business primarily through Columbia Property Trust Operating Partnership, L.P. (Columbia Property Trust OP), which acquires, develops, owns, leases and operates real properties directly through subsidiaries or through joint ventures.
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