CoreSite Realty (NYSE: COR) and Cedar Realty Trust (NYSE:CDR) are both financials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.
This is a breakdown of current recommendations and price targets for CoreSite Realty and Cedar Realty Trust, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cedar Realty Trust||1||2||3||0||2.33|
CoreSite Realty presently has a consensus target price of $108.30, indicating a potential downside of 7.05%. Cedar Realty Trust has a consensus target price of $5.75, indicating a potential downside of 5.43%. Given Cedar Realty Trust’s higher possible upside, analysts clearly believe Cedar Realty Trust is more favorable than CoreSite Realty.
This table compares CoreSite Realty and Cedar Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cedar Realty Trust||11.42%||4.18%||1.34%|
CoreSite Realty pays an annual dividend of $3.60 per share and has a dividend yield of 3.1%. Cedar Realty Trust pays an annual dividend of $0.20 per share and has a dividend yield of 3.3%. CoreSite Realty pays out 195.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cedar Realty Trust pays out -285.7% of its earnings in the form of a dividend. Cedar Realty Trust has raised its dividend for 6 consecutive years. Cedar Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares CoreSite Realty and Cedar Realty Trust’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CoreSite Realty||$400.35 million||9.97||$58.70 million||$1.84||63.33|
|Cedar Realty Trust||$151.09 million||3.67||$8.94 million||($0.07)||-86.86|
CoreSite Realty has higher revenue and earnings than Cedar Realty Trust. Cedar Realty Trust is trading at a lower price-to-earnings ratio than CoreSite Realty, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
CoreSite Realty has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500. Comparatively, Cedar Realty Trust has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.
Insider and Institutional Ownership
98.9% of CoreSite Realty shares are owned by institutional investors. Comparatively, 92.7% of Cedar Realty Trust shares are owned by institutional investors. 1.5% of CoreSite Realty shares are owned by company insiders. Comparatively, 4.5% of Cedar Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
CoreSite Realty beats Cedar Realty Trust on 11 of the 17 factors compared between the two stocks.
About CoreSite Realty
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 Cedar Realty Trust
Cedar Realty Trust, Inc. is a real estate investment trust (REIT). The Company focuses on ownership and operation of grocery-anchored shopping centers straddling the Washington District of Columbia (DC) to Boston corridor. As of December 31, 2016, the Company owned and managed a portfolio of 61 operating properties (excluding properties held for sale) totaling approximately 9.1 million square feet of gross leasable area (GLA). The Company focuses its investment activities on grocery-anchored shopping centers. The Company’s properties portfolio comprises 26 properties in Pennsylvania, eight properties in Massachusetts, seven properties in Connecticut, seven properties in Maryland / Washington, D.C, eight properties in Virginia, four properties in New Jersey and one property in New York. The Company’s 106 are going to expire in the year 2017. The Company conducts all of its businesses through the Cedar Realty Trust Partnership L.P. (the Operating Partnership).
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