Financial Contrast: Vornado Realty Trust (VNO) versus CBL & Associates Properties (CBL)

Vornado Realty Trust (NYSE: VNO) and CBL & Associates Properties (NYSE:CBL) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Valuation & Earnings

This table compares Vornado Realty Trust and CBL & Associates Properties’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vornado Realty Trust $2.51 billion 5.11 $906.91 million $4.14 16.29
CBL & Associates Properties $927.25 million 0.82 $120.94 million $0.44 10.16

Vornado Realty Trust has higher revenue and earnings than CBL & Associates Properties. CBL & Associates Properties is trading at a lower price-to-earnings ratio than Vornado Realty Trust, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Vornado Realty Trust has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, CBL & Associates Properties has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Vornado Realty Trust and CBL & Associates Properties, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vornado Realty Trust 0 4 7 0 2.64
CBL & Associates Properties 8 4 0 0 1.33

Vornado Realty Trust currently has a consensus price target of $89.60, indicating a potential upside of 32.82%. CBL & Associates Properties has a consensus price target of $8.47, indicating a potential upside of 89.46%. Given CBL & Associates Properties’ higher probable upside, analysts plainly believe CBL & Associates Properties is more favorable than Vornado Realty Trust.

Dividends

Vornado Realty Trust pays an annual dividend of $2.52 per share and has a dividend yield of 3.7%. CBL & Associates Properties pays an annual dividend of $0.80 per share and has a dividend yield of 17.9%. Vornado Realty Trust pays out 60.9% of its earnings in the form of a dividend. CBL & Associates Properties pays out 181.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider and Institutional Ownership

85.5% of Vornado Realty Trust shares are owned by institutional investors. Comparatively, 93.1% of CBL & Associates Properties shares are owned by institutional investors. 9.8% of Vornado Realty Trust shares are owned by company insiders. Comparatively, 11.7% of CBL & Associates Properties shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Vornado Realty Trust and CBL & Associates Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vornado Realty Trust 35.23% 4.73% 1.43%
CBL & Associates Properties 13.04% 8.14% 1.77%

Summary

Vornado Realty Trust beats CBL & Associates Properties on 9 of the 16 factors compared between the two stocks.

Vornado Realty Trust Company Profile

Vornado Realty Trust is a real estate investment trust (REIT). The Company conducts its business through Vornado Realty L.P. (the Operating Partnership). The Company operates through two segments: New York and Washington, DC. As of December 31, 2016, the Company’s New York segment consisted of 28.3 million square feet in 86 properties. Its properties include 1290 Avenue of the Americas, Two Penn Plaza, 770 Broadway and 90 Park Avenue. As of December 31, 2016, the Company’s Washington, DC segment consisted of 58 properties aggregating 14.7 million square feet, including 11.1 million square feet of office space in 44 properties, nine residential properties containing 3,156 units and a hotel property. Its properties include 2001 Jefferson Davis Highway, 223 23rd Street, 2221 South Clark Street and 1700 M Street. The Company’s interests in properties are held by the Operating Partnership. As of December 31, 2016, the Company owned the 3.7 million square foot Mart (theMart) in Chicago.

CBL & Associates Properties Company Profile

CBL & Associates Properties, Inc. is a self-managed, self-administered, integrated real estate investment trust. The Company owns, develops, acquires, leases, manages and operates regional shopping malls, open-air and mixed-use centers, outlet centers, associated centers, community centers and office properties. Its segments are Malls, Associated Centers, Community Centers and All Other. As of December 31, 2016, the Company owned a controlling interest in 65 Malls and non-controlling interests in nine Malls. As of December 31, 2016, the Company owned a controlling interest in 20 Associated Centers and a non-controlling interest in three Associated Centers. As of December 31, 2016, the Company owned a controlling interest in four Community Centers and a non-controlling interest in five Community Centers. As of December 31, 2016, the Company’s properties were located in 27 states, primarily in the southeastern and mid-western United States.

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