CBL & Associates Properties (CBL) & Vornado Realty Trust (VNO) Head-To-Head Analysis

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

Volatility & Risk

CBL & Associates Properties has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Vornado Realty Trust has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.

Dividends

CBL & Associates Properties pays an annual dividend of $0.80 per share and has a dividend yield of 16.8%. Vornado Realty Trust pays an annual dividend of $2.52 per share and has a dividend yield of 3.7%. 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. Vornado Realty Trust pays out 273.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CBL & Associates Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

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

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

CBL & Associates Properties presently has a consensus target price of $7.97, indicating a potential upside of 67.06%. Vornado Realty Trust has a consensus target price of $88.10, indicating a potential upside of 30.21%. Given CBL & Associates Properties’ higher possible upside, equities research analysts plainly believe CBL & Associates Properties is more favorable than Vornado Realty Trust.

Earnings & Valuation

This table compares CBL & Associates Properties and Vornado Realty Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CBL & Associates Properties $927.25 million 0.88 $120.94 million $0.44 10.84
Vornado Realty Trust $2.08 billion 6.17 $906.91 million $0.92 73.54

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.

Profitability

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

Net Margins Return on Equity Return on Assets
CBL & Associates Properties 13.04% 8.14% 1.77%
Vornado Realty Trust 9.10% 5.44% 1.54%

Institutional and Insider Ownership

93.1% of CBL & Associates Properties shares are held by institutional investors. Comparatively, 85.5% of Vornado Realty Trust shares are held by institutional investors. 11.7% of CBL & Associates Properties shares are held by insiders. Comparatively, 9.7% of Vornado Realty Trust shares are held by 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

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

About CBL & Associates Properties

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.

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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