New York REIT (NYSE: NYRT) and Vornado Realty Trust (NYSE:VNO) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitabiliy, analyst recommendations and risk.

Valuation and Earnings

This table compares New York REIT and Vornado Realty Trust’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
New York REIT $174.99 million 8.24 $52.35 million ($0.50) -17.28
Vornado Realty Trust $2.69 billion 5.54 $1.40 billion $5.19 15.16

Vornado Realty Trust has higher revenue and earnings than New York REIT. New York REIT 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.

Institutional and Insider Ownership

68.5% of New York REIT shares are owned by institutional investors. Comparatively, 87.6% of Vornado Realty Trust shares are owned by institutional investors. 0.2% of New York REIT shares are owned by insiders. Comparatively, 9.7% of Vornado Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Vornado Realty Trust pays an annual dividend of $2.84 per share and has a dividend yield of 3.6%. New York REIT does not pay a dividend. Vornado Realty Trust pays out 54.7% of its earnings in the form of a dividend. Vornado Realty Trust has raised its dividend for 2 consecutive years.

Profitability

This table compares New York REIT and Vornado Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New York REIT -51.49% -7.39% -3.75%
Vornado Realty Trust 42.35% 6.84% 2.07%

Analyst Ratings

This is a breakdown of recent ratings and target prices for New York REIT and Vornado Realty Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New York REIT 0 0 1 0 3.00
Vornado Realty Trust 0 4 4 0 2.50

New York REIT presently has a consensus target price of $9.75, indicating a potential upside of 12.85%. Vornado Realty Trust has a consensus target price of $99.00, indicating a potential upside of 25.81%. Given Vornado Realty Trust’s higher possible upside, analysts plainly believe Vornado Realty Trust is more favorable than New York REIT.

Risk & Volatility

New York REIT has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Vornado Realty Trust has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.

Summary

Vornado Realty Trust beats New York REIT on 13 of the 16 factors compared between the two stocks.

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.

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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