VEREIT (NYSE: VER) is one of 84 public companies in the “Commercial REITs” industry, but how does it compare to its competitors? We will compare VEREIT to related businesses based on the strength of its analyst recommendations, earnings, valuation, profitability, institutional ownership, risk and dividends.

Risk and Volatility

VEREIT has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, VEREIT’s competitors have a beta of 0.79, meaning that their average stock price is 21% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for VEREIT and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
VEREIT 1 1 4 0 2.50
VEREIT Competitors 649 2581 2225 24 2.30

VEREIT currently has a consensus target price of $10.00, indicating a potential upside of 21.51%. As a group, “Commercial REITs” companies have a potential upside of 8.61%. Given VEREIT’s stronger consensus rating and higher probable upside, analysts plainly believe VEREIT is more favorable than its competitors.

Profitability

This table compares VEREIT and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
VEREIT -3.76% -0.61% -0.34%
VEREIT Competitors 56.37% 7.06% 4.05%

Earnings and Valuation

This table compares VEREIT and its competitors revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
VEREIT $1.45 billion -$195.86 million -82.29
VEREIT Competitors $544.77 million $101.33 million 578.56

VEREIT has higher revenue, but lower earnings than its competitors. VEREIT is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

VEREIT pays an annual dividend of $0.55 per share and has a dividend yield of 6.7%. VEREIT pays out -549.9% of its earnings in the form of a dividend. As a group, “Commercial REITs” companies pay a dividend yield of 3.8% and pay out 166.1% of their earnings in the form of a dividend. VEREIT is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

84.9% of VEREIT shares are owned by institutional investors. Comparatively, 70.0% of shares of all “Commercial REITs” companies are owned by institutional investors. 0.1% of VEREIT shares are owned by insiders. Comparatively, 8.7% of shares of all “Commercial REITs” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

VEREIT competitors beat VEREIT on 8 of the 15 factors compared.

VEREIT Company Profile

VEREIT, Inc. is a full-service real estate operating company. The Company operates through two business segments: real estate investment (REI) segment and investment management segment, Cole Capital. As of December 31, 2016, through its REI segment, the Company owned and managed a portfolio of 4,142 retail, restaurant, office and industrial real estate properties with an aggregate of 93.3 million square feet, which are located in 49 states, Puerto Rico and Canada. Through its Cole Capital segment, the Company is responsible for raising capital for and managing the affairs of certain non-listed real estate investment trusts (the Cole REITs) on a day-to-day basis, identifying and making acquisitions and investments on the Cole REITs’ behalf. The Cole Capital segment sponsors and manages direct investment real estate programs, which primarily include over four publicly registered, non-traded REITs.

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