Veris Residential (NYSE:VRE) vs. Vornado Realty Trust (NYSE:VNO) Critical Comparison

Vornado Realty Trust (NYSE:VNO) and Veris Residential (NYSE:VRE) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Dividends

Vornado Realty Trust pays an annual dividend of $0.74 per share and has a dividend yield of 1.7%. Veris Residential pays an annual dividend of $0.32 per share and has a dividend yield of 1.9%. Vornado Realty Trust pays out -255.2% of its earnings in the form of a dividend. Veris Residential pays out -188.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Volatility and Risk

Vornado Realty Trust has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500. Comparatively, Veris Residential has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.

Insider & Institutional Ownership

90.0% of Vornado Realty Trust shares are owned by institutional investors. Comparatively, 93.0% of Veris Residential shares are owned by institutional investors. 8.1% of Vornado Realty Trust shares are owned by insiders. Comparatively, 16.0% of Veris Residential shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Vornado Realty Trust and Veris Residential, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vornado Realty Trust	2	6	2	0	2.00
Veris Residential	0	2	2	0	2.50

Vornado Realty Trust currently has a consensus price target of $36.58, indicating a potential downside of 13.80%. Veris Residential has a consensus price target of $18.25, indicating a potential upside of 10.14%. Given Veris Residential’s stronger consensus rating and higher probable upside, analysts plainly believe Veris Residential is more favorable than Vornado Realty Trust.

Valuation & Earnings

This table compares Vornado Realty Trust and Veris Residential”s 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	$1.77 billion	4.57	$105.49 million	($0.29)	-146.31
Veris Residential	$289.57 million	5.32	-$107.26 million	($0.17)	-97.47

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

Profitability

This table compares Vornado Realty Trust and Veris Residential’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vornado Realty Trust	0.46%	1.72%	0.48%
Veris Residential	-5.70%	-4.97%	-2.02%

Summary

Veris Residential beats Vornado Realty Trust on 8 of the 15 factors compared between the two stocks.

About Vornado Realty Trust

Vornado Realty Trust is a fully – integrated equity real estate investment trust.

About Veris Residential

Veris Residential, Inc. is a forward-thinking, environmentally and socially conscious real estate investment trust (REIT) that primarily owns, operates, acquires and develops holistically-inspired, Class A multifamily properties that meet the sustainability-conscious lifestyle needs of today’s residents while seeking to positively impact the communities it serves and the planet at large. The company is guided by an experienced management team and Board of Directors and is underpinned by leading corporate governance principle; a best-in-class and sustainable approach to operations; and an inclusive culture based on equality and meritocratic empowerment.