CoreSite Realty Corporation (NYSE: COR) and Kite Realty Group Trust (NYSE:KRG) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and price targets for CoreSite Realty Corporation and Kite Realty Group Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CoreSite Realty Corporation 0 7 4 0 2.36
Kite Realty Group Trust 0 3 3 1 2.71

CoreSite Realty Corporation presently has a consensus price target of $103.33, indicating a potential downside of 9.05%. Kite Realty Group Trust has a consensus price target of $26.00, indicating a potential upside of 34.51%. Given Kite Realty Group Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Kite Realty Group Trust is more favorable than CoreSite Realty Corporation.

Dividends

CoreSite Realty Corporation pays an annual dividend of $3.60 per share and has a dividend yield of 3.2%. Kite Realty Group Trust pays an annual dividend of $1.21 per share and has a dividend yield of 6.3%. CoreSite Realty Corporation pays out 206.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kite Realty Group Trust pays out 864.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CoreSite Realty Corporation has raised its dividend for 6 consecutive years and Kite Realty Group Trust has raised its dividend for 3 consecutive years.

Institutional & Insider Ownership

99.3% of CoreSite Realty Corporation shares are owned by institutional investors. Comparatively, 95.8% of Kite Realty Group Trust shares are owned by institutional investors. 1.5% of CoreSite Realty Corporation shares are owned by company insiders. Comparatively, 1.9% of Kite Realty Group Trust shares are owned 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.

Profitability

This table compares CoreSite Realty Corporation and Kite Realty Group Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CoreSite Realty Corporation 15.15% 14.14% 4.69%
Kite Realty Group Trust 3.29% 0.73% 0.33%

Valuation and Earnings

This table compares CoreSite Realty Corporation and Kite Realty Group Trust’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CoreSite Realty Corporation $444.59 million 8.75 $232.47 million $1.74 65.30
Kite Realty Group Trust $360.76 million 4.48 $224.39 million $0.14 138.07

CoreSite Realty Corporation has higher revenue and earnings than Kite Realty Group Trust. CoreSite Realty Corporation is trading at a lower price-to-earnings ratio than Kite Realty Group Trust, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

CoreSite Realty Corporation has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, Kite Realty Group Trust has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500.

Summary

CoreSite Realty Corporation beats Kite Realty Group Trust on 12 of the 18 factors compared between the two stocks.

CoreSite Realty Corporation Company Profile

CoreSite Realty Corporation (CoreSite) is an integrated, self-administered and self-managed real estate investment trust. The Company, through its controlling interest in CoreSite, L.P., is engaged in the business of ownership, acquisition, construction and operation of data centers across a range of markets in the United States, including the Northern Virginia, New York and San Francisco Bay areas, Chicago, Los Angeles, Boston, Miami and Denver. The enterprises, network operators, cloud providers and supporting service providers choose CoreSite to connect and protect their data, applications and computing workloads. Its offerings include the CoreSite Open Cloud Exchange and the Any2 Internet Exchange. As of December 31, 2016, it had offered cloud-enabled, network data center campuses with over 20,000 interconnections across its portfolio and direct access to carriers and Internet service providers, cloud and information technology service providers, and inter site connectivity.

Kite Realty Group Trust Company Profile

Kite Realty Group Trust is a real estate investment trust. The Company, through its subsidiary, Kite Realty Group, L.P., owns interests in various operating subsidiaries and joint ventures engaged in the ownership, operation, acquisition, development and redevelopment of neighborhood and community shopping centers in selected markets in the United States. As of December 31, 2016, the Company owned interests in 108 operating retail properties totaling approximately 21.4 million square feet of gross leasable area (including approximately 6.3 million square feet of non-owned anchor space) located in 20 states. As of December 31, 2016, the Company had an interest in two development projects under construction. In addition to its development projects, as of December 31, 2016, the Company had nine redevelopment projects. As of December 31, 2016, the Company owned interests in one office operating property and an associated parking garage.

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