Comparing Vornado Realty Trust (VNO) and Its Competitors

Vornado Realty Trust (NYSE: VNO) is one of 73 publicly-traded companies in the “Commercial REITs” industry, but how does it weigh in compared to its peers? We will compare Vornado Realty Trust to similar businesses based on the strength of its profitability, valuation, risk, earnings, institutional ownership, analyst recommendations and dividends.

Profitability

This table compares Vornado Realty Trust and its peers’ 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%
Vornado Realty Trust Competitors 51.34% 5.83% 3.79%

Dividends

Vornado Realty Trust pays an annual dividend of $2.40 per share and has a dividend yield of 3.1%. Vornado Realty Trust pays out 57.1% of its earnings in the form of a dividend. As a group, “Commercial REITs” companies pay a dividend yield of 3.9% and pay out 185.3% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings for Vornado Realty Trust and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vornado Realty Trust 0 3 7 0 2.70
Vornado Realty Trust Competitors 434 2176 2067 23 2.36

Vornado Realty Trust currently has a consensus price target of $92.40, suggesting a potential upside of 20.28%. As a group, “Commercial REITs” companies have a potential upside of 5.75%. Given Vornado Realty Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Vornado Realty Trust is more favorable than its peers.

Valuation and Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
Vornado Realty Trust $2.51 billion $906.91 million 18.29
Vornado Realty Trust Competitors $536.81 million $100.12 million 441.63

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

Volatility & Risk

Vornado Realty Trust has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Vornado Realty Trust’s peers have a beta of 0.79, meaning that their average stock price is 21% less volatile than the S&P 500.

Institutional & Insider Ownership

84.1% of Vornado Realty Trust shares are held by institutional investors. Comparatively, 71.6% of shares of all “Commercial REITs” companies are held by institutional investors. 9.7% of Vornado Realty Trust shares are held by company insiders. Comparatively, 7.5% of shares of all “Commercial REITs” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Vornado Realty Trust beats its peers on 9 of the 15 factors compared.

About Vornado Realty Trust

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.

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