Empire State Realty Trust (NYSE: ESRT) is one of 87 publicly-traded companies in the “Commercial REITs” industry, but how does it contrast to its peers? We will compare Empire State Realty Trust to related businesses based on the strength of its risk, valuation, institutional ownership, analyst recommendations, dividends, profitability and earnings.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Empire State Realty Trust and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Empire State Realty Trust 0 3 1 0 2.25
Empire State Realty Trust Competitors 645 2531 2194 23 2.30

Empire State Realty Trust currently has a consensus target price of $21.75, suggesting a potential upside of 8.97%. As a group, “Commercial REITs” companies have a potential upside of 6.54%. Given Empire State Realty Trust’s higher possible upside, equities analysts plainly believe Empire State Realty Trust is more favorable than its peers.

Profitability

This table compares Empire State Realty Trust and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Empire State Realty Trust 11.90% 3.98% 2.04%
Empire State Realty Trust Competitors 51.95% 6.68% 3.85%

Dividends

Empire State Realty Trust pays an annual dividend of $0.42 per share and has a dividend yield of 2.1%. Empire State Realty Trust pays out 107.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Commercial REITs” companies pay a dividend yield of 3.8% and pay out 157.0% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Empire State Realty Trust and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Empire State Realty Trust $678.00 million $52.39 million 51.18
Empire State Realty Trust Competitors $380.14 million $70.95 million 15.01

Empire State Realty Trust has higher revenue, but lower earnings than its peers. Empire State Realty Trust is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

83.7% of Empire State Realty Trust shares are owned by institutional investors. Comparatively, 69.5% of shares of all “Commercial REITs” companies are owned by institutional investors. 11.8% of Empire State Realty Trust shares are owned by insiders. Comparatively, 9.0% of shares of all “Commercial REITs” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Empire State Realty Trust has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, Empire State Realty Trust’s peers have a beta of 0.80, suggesting that their average stock price is 20% less volatile than the S&P 500.

Summary

Empire State Realty Trust peers beat Empire State Realty Trust on 8 of the 15 factors compared.

Empire State Realty Trust Company Profile

Empire State Realty Trust, Inc. is a real estate investment trust. The Company owns, manages, operates, acquires and repositions office and retail properties in Manhattan and the greater New York metropolitan area, including the Empire State Building. The Company operates through two segments: Real Estate and Observatory. The Real Estate segment includes all activities related to the ownership, management, operation, acquisition, repositioning and disposition of its real estate assets. The Observatory segment operates the 86th and 102nd floor observatories at the Empire State Building. As of December 31, 2016, its portfolio consisted of 14 office properties and six standalone retail properties totaling approximately 10.1 million rentable square feet. The Company’s properties include One Grand Central Place, 1400 Broadway, 111 West 33rd Street, 250 West 57th Street, 1359 Broadway and 1333 Broadway.

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