Brookfield Canada Office Properties (NYSE: BOXC) and Vornado Realty Trust (NYSE:VNO) are both financials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitabiliy, earnings and risk.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Brookfield Canada Office Properties and Vornado Realty Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brookfield Canada Office Properties 0 4 0 0 2.00
Vornado Realty Trust 0 4 4 0 2.50

Brookfield Canada Office Properties currently has a consensus target price of $29.50, indicating a potential upside of 18.19%. Vornado Realty Trust has a consensus target price of $99.00, indicating a potential upside of 26.83%. Given Vornado Realty Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Vornado Realty Trust is more favorable than Brookfield Canada Office Properties.

Volatility & Risk

Brookfield Canada Office Properties has a beta of 0.99, suggesting that its share price is 1% 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.

Dividends

Brookfield Canada Office Properties pays an annual dividend of $0.97 per share and has a dividend yield of 3.9%. Vornado Realty Trust pays an annual dividend of $2.84 per share and has a dividend yield of 3.6%. Brookfield Canada Office Properties pays out 83.6% 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 54.7% of its earnings in the form of a dividend.

Profitability

This table compares Brookfield Canada Office Properties and Vornado Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brookfield Canada Office Properties 7.64% 1.26% 0.65%
Vornado Realty Trust 42.35% 6.84% 2.07%

Institutional and Insider Ownership

20.1% of Brookfield Canada Office Properties shares are owned by institutional investors. Comparatively, 87.6% of Vornado Realty Trust shares are owned by institutional investors. 9.8% of Vornado Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Brookfield Canada Office Properties and Vornado Realty Trust’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Brookfield Canada Office Properties N/A N/A N/A $1.16 21.52
Vornado Realty Trust $2.69 billion 5.49 $1.40 billion $5.19 15.04

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

Summary

Vornado Realty Trust beats Brookfield Canada Office Properties on 11 of the 13 factors compared between the two stocks.

About Brookfield Canada Office Properties

Brookfield Canada Office Properties is a Canada-based real estate investment trust (REIT). The Company invests, develops and operates commercial office properties in Toronto, Ottawa, Calgary and Vancouver. The Company’s commercial-property portfolio consists of interests in approximately 25 properties totaling approximately 21.1 million square feet, including approximately 4.0 million square feet of parking and other. The Company’s development portfolio consists of the Brookfield Place Calgary East development site totaling approximately 1.4 million square feet in Calgary. The Company also invests in ongoing maintenance and capital improvement projects. The Company focuses on the markets, which include financial, government and energy sectors, which are primarily located in the cities of Toronto and Calgary. Its properties include 2 Queen Street East, Queen’s Quay Terminal, Exchange Tower, Bankers Hall Retail, Suncor Energy Centre, Jean Edmonds Tower and Royal Centre.

About Vornado Realty Trust

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.

Receive News & Ratings for Brookfield Canada Office Properties Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Brookfield Canada Office Properties and related companies with MarketBeat.com's FREE daily email newsletter.