Financial Comparison: City Office REIT (CIO) vs. SL Green Realty Corporation (SLG)
City Office REIT (NYSE: CIO) and SL Green Realty Corporation (NYSE:SLG) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, valuation and risk.
City Office REIT pays an annual dividend of $0.94 per share and has a dividend yield of 7.5%. SL Green Realty Corporation pays an annual dividend of $3.10 per share and has a dividend yield of 3.2%. City Office REIT pays out -723.1% of its earnings in the form of a dividend. 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. City Office REIT has raised its dividend for 5 consecutive years. City Office REIT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation & Earnings
This table compares City Office REIT 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|
|City Office REIT||$90.65 million||4.17||$47.13 million||($0.13)||-96.08|
|SL Green Realty Corporation||$1.53 billion||6.33||$871.44 million||$0.97||100.88|
SL Green Realty Corporation has higher revenue and earnings than City Office REIT. City Office REIT is trading at a lower price-to-earnings ratio than SL Green Realty Corporation, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
City Office REIT has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500. Comparatively, SL Green Realty Corporation has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500.
This is a summary of recent recommendations for City Office REIT and SL Green Realty Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|City Office REIT||0||1||3||0||2.75|
|SL Green Realty Corporation||0||7||5||0||2.42|
City Office REIT currently has a consensus price target of $14.83, suggesting a potential upside of 18.76%. SL Green Realty Corporation has a consensus price target of $115.82, suggesting a potential upside of 18.36%. Given City Office REIT’s stronger consensus rating and higher probable upside, analysts clearly believe City Office REIT is more favorable than SL Green Realty Corporation.
This table compares City Office REIT and SL Green Realty Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|City Office REIT||3.70%||1.91%||0.51%|
|SL Green Realty Corporation||7.20%||1.43%||0.72%|
Insider & Institutional Ownership
53.0% of City Office REIT shares are owned by institutional investors. 3.2% of City Office REIT shares are owned by insiders. Comparatively, 3.0% of SL Green Realty Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
SL Green Realty Corporation beats City Office REIT on 9 of the 17 factors compared between the two stocks.
City Office REIT Company Profile
City Office REIT, Inc. is a real estate investment trust. The Company is focused on acquiring, owning and operating office properties located primarily in metropolitan areas in the Southern and Western United States. It conducts its operations primarily through City Office REIT Operating Partnership, L.P. (the Operating Partnership). As of December 31, 2016, it owned 18 office complexes consisting of 37 office buildings with a total of approximately 4.4 million square feet of net rentable area (NRA) in the metropolitan areas of Boise, Dallas, Denver, Orlando, Phoenix, Portland and Tampa. Its properties include Park Tower, City Center, Intellicenter and Carillon Point in Tampa, Florida; Cherry Creek, Plaza 25, DTC Crossroads, Superior Pointe and Logan Tower in Denver, Colorado; Washington Group Plaza in Boise, Idaho; FRP Collection, Central Fairwinds and FRP Ingenuity Drive in Orlando, Florida; 190 Office Center and Lake Vista Pointe in Dallas, Texas, and SanTan in Phoenix, Arizona.
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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