CoreSite Realty Corporation (NYSE: COR) and National Retail Properties (NYSE:NNN) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.
This is a summary of current ratings for CoreSite Realty Corporation and National Retail Properties, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|CoreSite Realty Corporation||0||7||4||0||2.36|
|National Retail Properties||0||2||4||0||2.67|
CoreSite Realty Corporation currently has a consensus price target of $99.89, indicating a potential downside of 11.92%. National Retail Properties has a consensus price target of $48.20, indicating a potential upside of 15.04%. Given National Retail Properties’ stronger consensus rating and higher probable upside, analysts plainly believe National Retail Properties is more favorable than CoreSite Realty Corporation.
CoreSite Realty Corporation pays an annual dividend of $3.60 per share and has a dividend yield of 3.2%. National Retail Properties pays an annual dividend of $1.90 per share and has a dividend yield of 4.5%. CoreSite Realty Corporation pays out 206.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Retail Properties pays out 142.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CoreSite Realty Corporation has increased its dividend for 6 consecutive years and National Retail Properties has increased its dividend for 7 consecutive years. National Retail Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares CoreSite Realty Corporation and National Retail Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|CoreSite Realty Corporation||15.15%||14.14%||4.69%|
|National Retail Properties||44.17%||8.22%||4.03%|
Earnings and Valuation
This table compares CoreSite Realty Corporation and National Retail Properties’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CoreSite Realty Corporation||$444.59 million||8.73||$232.47 million||$1.74||65.18|
|National Retail Properties||$562.72 million||11.11||$500.46 million||$1.33||31.50|
National Retail Properties has higher revenue and earnings than CoreSite Realty Corporation. National Retail Properties is trading at a lower price-to-earnings ratio than CoreSite Realty Corporation, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
98.3% of CoreSite Realty Corporation shares are held by institutional investors. Comparatively, 89.4% of National Retail Properties shares are held by institutional investors. 1.5% of CoreSite Realty Corporation shares are held by insiders. Comparatively, 1.0% of National Retail Properties shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk & Volatility
CoreSite Realty Corporation has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500. Comparatively, National Retail Properties has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500.
National Retail Properties beats CoreSite Realty Corporation on 9 of the 16 factors compared between the two stocks.
About CoreSite Realty Corporation
CoreSite Realty Corporation (CoreSite) is an integrated, self-administered and self-managed real estate investment trust. The Company, through its controlling interest in CoreSite, L.P., is engaged in the business of ownership, acquisition, construction and operation of data centers across a range of markets in the United States, including the Northern Virginia, New York and San Francisco Bay areas, Chicago, Los Angeles, Boston, Miami and Denver. The enterprises, network operators, cloud providers and supporting service providers choose CoreSite to connect and protect their data, applications and computing workloads. Its offerings include the CoreSite Open Cloud Exchange and the Any2 Internet Exchange. As of December 31, 2016, it had offered cloud-enabled, network data center campuses with over 20,000 interconnections across its portfolio and direct access to carriers and Internet service providers, cloud and information technology service providers, and inter site connectivity.
About National Retail Properties
National Retail Properties, Inc. is a real estate investment trust (REIT). The Company acquires, owns, invests in and develops properties that are leased primarily to retail tenants under long-term net leases and are primarily held for investment. As of December 31, 2016, it owned 2,535 properties with an aggregate gross leasable area of approximately 27,204,000 square feet, located in 48 states. The Company focuses on investing in a range of property and tenant types; leases, mortgages and other types of real estate interests; loans secured by personal property; loans secured by partnership or membership interests in partnerships or limited liability companies, and securities of other REITs, or other issuers, including for the purpose of exercising control over such entities. The Company owns a portfolio of freestanding retail stores across the United States. It owns approximately 2,290 stores, which are leased to over 400 tenants in approximately 40 different retail categories.
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