Biomed Realty Trust (BMR) versus Empire State Realty Trust (ESRT) Critical Analysis
Biomed Realty Trust (NYSE: BMR) and Empire State Realty Trust (NYSE:ESRT) are both commercial reits – nec companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.
Biomed Realty Trust pays an annual dividend of $1.04 per share and has a dividend yield of 4.4%. Empire State Realty Trust pays an annual dividend of $0.42 per share and has a dividend yield of 2.1%. Biomed Realty Trust pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Empire State Realty Trust pays out 105.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Empire State Realty Trust has increased its dividend for 7 consecutive years. Biomed Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a summary of recent ratings and recommmendations for Biomed Realty Trust and Empire State Realty Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Biomed Realty Trust||0||0||0||0||N/A|
|Empire State Realty Trust||0||3||1||0||2.25|
Empire State Realty Trust has a consensus price target of $21.75, suggesting a potential upside of 6.25%. Given Empire State Realty Trust’s higher possible upside, analysts plainly believe Empire State Realty Trust is more favorable than Biomed Realty Trust.
Earnings and Valuation
This table compares Biomed Realty Trust and Empire State Realty Trust’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Biomed Realty Trust||N/A||N/A||N/A||$1.04||22.89|
|Empire State Realty Trust||$678.00 million||4.79||$52.39 million||$0.40||51.18|
Empire State Realty Trust has higher revenue and earnings than Biomed Realty Trust. Biomed Realty Trust is trading at a lower price-to-earnings ratio than Empire State Realty Trust, indicating that it is currently the more affordable of the two stocks.
This table compares Biomed Realty Trust and Empire State Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Biomed Realty Trust||18.98%||3.73%||2.07%|
|Empire State Realty Trust||11.90%||3.98%||2.04%|
Insider & Institutional Ownership
82.9% of Empire State Realty Trust shares are owned by institutional investors. 11.8% of Empire State Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Empire State Realty Trust beats Biomed Realty Trust on 7 of the 12 factors compared between the two stocks.
About Biomed Realty Trust
BioMed Realty Trust, Inc. operates as a real estate investment trust (REIT). The Company is the parent company and general partner of BioMed Realty, L.P. The Company owns, acquires, develops, redevelops, leases and manages laboratory and office space for the life science industry. The Company’s tenants primarily include biotechnology and pharmaceutical companies, scientific research institutions, government agencies and other entities involved in the life science industry. The Company’s properties are located in markets, which has centers for scientific research, including Boston, San Francisco, San Diego, Maryland, New York, New Jersey, Pennsylvania, North Carolina, Seattle, Cambridge (the United Kingdom) and research parks located near or adjacent to universities and their related medical systems. The Company owns interests in properties comprising approximately 17.5 million rentable square feet.
About Empire State Realty Trust
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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