Washington Real Estate Investment Trust (WRE) and New York REIT (NYRT) Head to Head Contrast

Washington Real Estate Investment Trust (NYSE: WRE) and New York REIT (NYSE:NYRT) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Dividends

Washington Real Estate Investment Trust pays an annual dividend of $1.20 per share and has a dividend yield of 3.6%. New York REIT does not pay a dividend. Washington Real Estate Investment Trust pays out 90.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Washington Real Estate Investment Trust has raised its dividend for 2 consecutive years.

Valuation & Earnings

This table compares Washington Real Estate Investment Trust and New York REIT’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Washington Real Estate Investment Trust $317.68 million 8.09 $182.98 million $1.33 25.12
New York REIT $174.99 million 7.39 $52.35 million ($0.50) -15.40

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

Volatility & Risk

Washington Real Estate Investment Trust has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, New York REIT has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.

Profitability

This table compares Washington Real Estate Investment Trust and New York REIT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Washington Real Estate Investment Trust 31.36% 9.34% 4.36%
New York REIT N/A -5.71% -2.70%

Insider & Institutional Ownership

84.8% of Washington Real Estate Investment Trust shares are owned by institutional investors. Comparatively, 70.5% of New York REIT shares are owned by institutional investors. 0.6% of Washington Real Estate Investment Trust shares are owned by company insiders. Comparatively, 0.1% of New York REIT shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Washington Real Estate Investment Trust and New York REIT, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Washington Real Estate Investment Trust 0 2 3 0 2.60
New York REIT 0 0 1 0 3.00

Washington Real Estate Investment Trust currently has a consensus price target of $34.10, suggesting a potential upside of 2.07%. New York REIT has a consensus price target of $9.75, suggesting a potential upside of 26.62%. Given New York REIT’s stronger consensus rating and higher probable upside, analysts plainly believe New York REIT is more favorable than Washington Real Estate Investment Trust.

Summary

Washington Real Estate Investment Trust beats New York REIT on 13 of the 17 factors compared between the two stocks.

Washington Real Estate Investment Trust Company Profile

Washington Real Estate Investment Trust is a self-administered equity real estate investment trust. The Company’s business consists of the ownership and operation of real property in the greater Washington metro region. The Company owns a diversified portfolio of office buildings, multifamily buildings and retail centers. The Company’s segments include office, multifamily and retail. The Company’s office properties provide office space for various types of businesses and professions. The Company’s multifamily properties provide rental housing for individuals and families throughout the Washington metro region. Its retail properties are typically grocery store anchored neighborhood centers that include other small shop tenants or regional power centers with various junior box tenants. As of April 4, 2017, it owned a diversified portfolio of 50 properties, totaling approximately 6.0 million square feet of commercial space and 4,480 residential units, and land held for development.

New York REIT Company Profile

New York REIT, Inc. is a real estate investment trust. The Company owns a portfolio of commercial real estate. The Company’s business is primarily conducted through New York Recovery Operating Partnership, L.P. As of December 31, 2016, the Company owned 19 properties, which aggregated 3.3 million rentable square feet. The Company holds interests in properties of various types, such as office, retail, hotel, parking and storage. The Company’s properties include Design Center, 416 Washington Street, 50 Varick Street, 1440 Broadway, One Worldwide Plaza, 256 West 38th Street, 229 West 36th Street, 333 West 34th Street, 367-387 Bleecker Street, 33 West 56th Street (garage) and 350 West 42nd Street.

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