Analyzing Veris Residential (NYSE:VRE) & Highlands REIT (OTCMKTS:HHDS)

Highlands REIT (OTCMKTS:HHDS) and Veris Residential (NYSE:VRE) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Profitability

This table compares Highlands REIT and Veris Residential’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Highlands REIT	-11.68%	-1.98%	-1.19%
Veris Residential	-5.70%	-4.97%	-2.02%

Volatility & Risk

Highlands REIT has a beta of 15.97, meaning that its share price is 1,497% more volatile than the S&P 500. Comparatively, Veris Residential has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.

Insider and Institutional Ownership

0.0% of Highlands REIT shares are owned by institutional investors. Comparatively, 93.0% of Veris Residential shares are owned by institutional investors. 3.7% of Highlands REIT shares are owned by company insiders. Comparatively, 16.0% of Veris Residential shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Highlands REIT and Veris Residential”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Highlands REIT	$30.98 million	0.41	-$10.30 million	N/A	N/A
Veris Residential	$289.57 million	5.34	-$107.26 million	($0.17)	-97.88

Highlands REIT has higher earnings, but lower revenue than Veris Residential.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Highlands REIT and Veris Residential, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Highlands REIT	0	0	0	0	0.00
Veris Residential	0	2	2	0	2.50

Veris Residential has a consensus price target of $18.25, suggesting a potential upside of 9.68%. Given Veris Residential’s stronger consensus rating and higher probable upside, analysts plainly believe Veris Residential is more favorable than Highlands REIT.

Summary

Veris Residential beats Highlands REIT on 8 of the 12 factors compared between the two stocks.

About Highlands REIT

We are a self-advised and self-administered real estate investment trust (REIT) created to own and manage substantially all of the non-core investment properties previously owned and managed by our former parent, InvenTrust Properties Corp., a Maryland corporation (InvenTrust). On April 28, 2016, we were spun-off from InvenTrust through a pro rata distribution (the Distribution) by InvenTrust of 100% of the outstanding shares of our common stock to holders of InvenTrust's common stock. Prior to or concurrent with the separation, we and InvenTrust engaged in certain reorganization transactions that were designed to consolidate substantially all of InvenTrust's remaining non-core investment properties in Highlands.

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.