Douglas Emmett (DEI) versus Vornado Realty Trust (VNO) Financial Comparison

Douglas Emmett (NYSE: DEI) and Vornado Realty Trust (NYSE:VNO) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Douglas Emmett and Vornado Realty Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Douglas Emmett 2 7 2 0 2.00
Vornado Realty Trust 0 4 7 0 2.64

Douglas Emmett currently has a consensus price target of $40.88, suggesting a potential upside of 11.71%. Vornado Realty Trust has a consensus price target of $88.10, suggesting a potential upside of 30.93%. Given Vornado Realty Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Vornado Realty Trust is more favorable than Douglas Emmett.

Volatility & Risk

Douglas Emmett has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, Vornado Realty Trust has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.

Valuation and Earnings

This table compares Douglas Emmett and Vornado Realty Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Douglas Emmett $812.05 million 7.64 $94.44 million $0.57 64.19
Vornado Realty Trust $2.08 billion 6.13 $227.41 million $0.85 79.16

Vornado Realty Trust has higher revenue and earnings than Douglas Emmett. Douglas Emmett is trading at a lower price-to-earnings ratio than Vornado Realty Trust, indicating that it is currently the more affordable of the two stocks.

Dividends

Douglas Emmett pays an annual dividend of $1.00 per share and has a dividend yield of 2.7%. Vornado Realty Trust pays an annual dividend of $2.52 per share and has a dividend yield of 3.7%. Douglas Emmett pays out 175.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Vornado Realty Trust pays out 296.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Douglas Emmett has raised its dividend for 7 consecutive years.

Profitability

This table compares Douglas Emmett and Vornado Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Douglas Emmett 12.36% 2.69% 1.18%
Vornado Realty Trust 9.10% 5.44% 1.54%

Institutional and Insider Ownership

96.1% of Douglas Emmett shares are held by institutional investors. Comparatively, 83.9% of Vornado Realty Trust shares are held by institutional investors. 17.8% of Douglas Emmett shares are held by insiders. Comparatively, 9.8% of Vornado Realty Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Vornado Realty Trust beats Douglas Emmett on 11 of the 17 factors compared between the two stocks.

Douglas Emmett Company Profile

Douglas Emmett, Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company is owner and operator of office and multifamily properties located in submarkets in Los Angeles and Honolulu. The Company operates through two segments: the acquisition, development, ownership and management of office real estate (Office Segment), and the acquisition, development, ownership and management of multifamily real estate (Multifamily Segment). The services for its Office segment include primarily rental of office space and other tenant services, including parking and storage space rental. The services for its Multifamily segment include primarily rental of apartments and other tenant services, including parking and storage space rental. It focuses on owning, acquiring developing and managing a substantial share of office properties and multifamily communities in neighborhoods.

Vornado Realty Trust Company Profile

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.

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