Contrasting Gramercy Property Trust (GPT) and SL Green Realty Corporation (SLG)
Gramercy Property Trust (NYSE: GPT) and SL Green Realty Corporation (NYSE:SLG) are both mid-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, profitability and valuation.
Risk and Volatility
Gramercy Property Trust has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500. Comparatively, SL Green Realty Corporation has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500.
This table compares Gramercy Property Trust and SL Green Realty Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Gramercy Property Trust||4.35%||0.81%||0.40%|
|SL Green Realty Corporation||7.20%||1.43%||0.72%|
Gramercy Property Trust pays an annual dividend of $1.50 per share and has a dividend yield of 5.1%. SL Green Realty Corporation pays an annual dividend of $3.10 per share and has a dividend yield of 3.1%. Gramercy Property Trust pays out 1,666.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SL Green Realty Corporation pays out 319.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Gramercy Property Trust has raised its dividend for 5 consecutive years and SL Green Realty Corporation has raised its dividend for 2 consecutive years. Gramercy Property Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of current ratings and price targets for Gramercy Property Trust and SL Green Realty Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gramercy Property Trust||1||1||2||0||2.25|
|SL Green Realty Corporation||0||8||6||0||2.43|
Gramercy Property Trust presently has a consensus target price of $32.00, suggesting a potential upside of 8.95%. SL Green Realty Corporation has a consensus target price of $115.91, suggesting a potential upside of 16.84%. Given SL Green Realty Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe SL Green Realty Corporation is more favorable than Gramercy Property Trust.
Valuation & Earnings
This table compares Gramercy Property Trust and SL Green Realty Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Gramercy Property Trust||$525.64 million||8.49||$368.69 million||$0.09||326.37|
|SL Green Realty Corporation||$1.53 billion||6.42||$871.44 million||$0.97||102.27|
SL Green Realty Corporation has higher revenue and earnings than Gramercy Property Trust. SL Green Realty Corporation is trading at a lower price-to-earnings ratio than Gramercy Property Trust, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
87.0% of Gramercy Property Trust shares are held by institutional investors. 1.4% of Gramercy Property Trust shares are held by company insiders. Comparatively, 3.0% of SL Green Realty Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
SL Green Realty Corporation beats Gramercy Property Trust on 12 of the 17 factors compared between the two stocks.
Gramercy Property Trust Company Profile
Gramercy Property Trust is a real estate investment trust (REIT), which is an investor and asset manager of commercial real estate. The Company’s operating segments include Investments/Corporate and Asset Management. The Investments/Corporate segment includes all of its activities related to the investment and ownership of commercial properties located throughout the United States and Europe. The Asset Management segment includes substantially all of its activities related to asset and property management of commercial properties located throughout the United States and Europe. It is engaged in acquiring and managing single-tenant, net leased industrial, office and specialty properties. It focuses on income producing properties leased to tenants in markets in the United States and Europe. It earns revenues through rental revenues on properties that it owns in the United States and asset management revenues on properties owned by third parties in the United States and Europe.
SL Green Realty Corporation Company Profile
SL Green Realty Corp. is a self-managed real estate investment trust (REIT), with in-house capabilities in property management, acquisitions and dispositions, financing, development and redevelopment, construction and leasing. The Company operates through two segments: real estate, and debt and preferred equity investments. It acquires, owns, repositions, manages and leases commercial office, retail and multifamily properties in the New York Metropolitan area. Its debt and preferred equity activities include purchases and originations, inclusive of advances under future funding obligations, discount and fee amortization, and paid-in-kind interest. As of December 31, 2016, the Company owned or held interests in 24 consolidated commercial office buildings encompassing approximately 16.1 million rentable square feet and seven unconsolidated commercial office buildings encompassing approximately 6.6 million rentable square feet located primarily in midtown Manhattan.
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