TIER REIT (OTCMKTS: TIER) and NorthStar Realty Europe Corp. (NYSE:NRE) are both small-cap financials companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.

Dividends

NorthStar Realty Europe Corp. pays an annual dividend of $0.60 per share and has a dividend yield of 4.7%. TIER REIT does not pay a dividend. NorthStar Realty Europe Corp. pays out -133.3% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares TIER REIT and NorthStar Realty Europe Corp.’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TIER REIT $220.99 million 4.08 $99.25 million N/A N/A
NorthStar Realty Europe Corp. $131.25 million 5.33 $37.01 million ($0.45) -28.16

TIER REIT has higher revenue and earnings than NorthStar Realty Europe Corp..

Analyst Ratings

This is a summary of recent recommendations and price targets for TIER REIT and NorthStar Realty Europe Corp., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TIER REIT 0 0 2 0 3.00
NorthStar Realty Europe Corp. 0 0 0 0 N/A

TIER REIT presently has a consensus price target of $20.50, indicating a potential upside of 8.81%. Given TIER REIT’s higher possible upside, analysts plainly believe TIER REIT is more favorable than NorthStar Realty Europe Corp..

Profitability

This table compares TIER REIT and NorthStar Realty Europe Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TIER REIT -4.62% 2.28% -0.64%
NorthStar Realty Europe Corp. -18.57% 7.73% 2.46%

Institutional & Insider Ownership

69.9% of NorthStar Realty Europe Corp. shares are held by institutional investors. 2.2% of NorthStar Realty Europe Corp. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

NorthStar Realty Europe Corp. beats TIER REIT on 7 of the 12 factors compared between the two stocks.

TIER REIT Company Profile

TIER REIT, Inc. is a real estate investment trust. The Company’s business consists of owning, acquiring, developing, operating, investing in, and disposing of real estate assets. The Company’s business is conducted through Tier Operating Partnership LP (Tier OP). As of December 31, 2016, the Company owned interests in 29 operating office properties, one non-operating property and one development property located in 13 markets throughout the United States. It owns properties located in metropolitan cities and suburban markets in the United States. The Company’s office properties include The Terrace Office Park, Domain 3, Domain 4, 5950 Sherry Lane, Burnett Plaza, Loop Central, One BriarLake Plaza, Three Eldridge Place, Eisenhower I, Forum Office Park, 500 E. Pratt, Woodcrest Corporate Center and 111 Woodcrest. The Company’s properties are located in Austin, Dallas, Houston, Charlotte, Nashville, Atlanta and Denver.

NorthStar Realty Europe Corp. Company Profile

NorthStar Realty Europe Corp. is a real estate investment trust (REIT). The Company is a European focused commercial real estate company with primary office properties in cities within Germany, the United Kingdom and France. Its objective is to provide its stockholders with stable and recurring cash flow supplemented by capital growth over time. The Company conducts its business through two segments: Real Estate and Corporate. Its European commercial real estate business is primarily focused on office properties. Its portfolio consists of approximately 48 properties and a total of approximately 495,588 square meters of rentable space, located in various European markets, including Frankfurt, Hamburg, Berlin, London, Paris, Amsterdam, Milan, Brussels and Madrid. Its overall portfolio is over 87% occupied. In addition, it owns over two hotels, which are leased to third-party operators. It is externally managed and advised by an affiliate of NorthStar Asset Management Group Inc. (NSAM).

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