Head-To-Head Survey: Vornado Realty Trust (VNO) and Its Peers

Vornado Realty Trust (NYSE: VNO) is one of 77 publicly-traded companies in the “Commercial REITs” industry, but how does it contrast to its rivals? We will compare Vornado Realty Trust to similar companies based on the strength of its valuation, institutional ownership, dividends, profitability, risk, earnings and analyst recommendations.

Insider & Institutional Ownership

86.2% of Vornado Realty Trust shares are held by institutional investors. Comparatively, 73.2% of shares of all “Commercial REITs” companies are held by institutional investors. 9.8% of Vornado Realty Trust shares are held by insiders. Comparatively, 7.3% of shares of all “Commercial REITs” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

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 58.0% 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 92.1% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Vornado Realty Trust and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Vornado Realty Trust $2.51 billion $906.91 million 18.68
Vornado Realty Trust Competitors $537.26 million $100.34 million 445.72

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

Analyst Ratings

This is a summary of recent ratings for Vornado Realty Trust and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vornado Realty Trust 0 3 6 0 2.67
Vornado Realty Trust Competitors 634 2589 2231 24 2.30

Vornado Realty Trust currently has a consensus target price of $89.89, indicating a potential upside of 16.26%. As a group, “Commercial REITs” companies have a potential upside of 6.81%. Given Vornado Realty Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Vornado Realty Trust is more favorable than its rivals.

Profitability

This table compares Vornado Realty Trust and its rivals’ 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 53.20% 6.65% 3.88%

Volatility and Risk

Vornado Realty Trust has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, Vornado Realty Trust’s rivals have a beta of 0.77, suggesting that their average share price is 23% less volatile than the S&P 500.

Summary

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

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.

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