SITE Centers (NYSE:SITC) vs. Orion Office REIT (NYSE:ONL) Financial Survey

Orion Office REIT (NYSE:ONL) and SITE Centers (NYSE:SITC) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Valuation and Earnings

This table compares Orion Office REIT and SITE Centers”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orion Office REIT	$164.86 million	0.80	-$57.30 million	($1.84)	-1.28
SITE Centers	$277.47 million	2.39	$265.70 million	$9.74	1.30

SITE Centers has higher revenue and earnings than Orion Office REIT. Orion Office REIT is trading at a lower price-to-earnings ratio than SITE Centers, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Orion Office REIT and SITE Centers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orion Office REIT	0	1	0	0	2.00
SITE Centers	0	7	2	0	2.22

SITE Centers has a consensus price target of $35.61, indicating a potential upside of 181.15%. Given SITE Centers’ stronger consensus rating and higher possible upside, analysts plainly believe SITE Centers is more favorable than Orion Office REIT.

Risk & Volatility

Orion Office REIT has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, SITE Centers has a beta of 1.63, meaning that its share price is 63% more volatile than the S&P 500.

Dividends

Orion Office REIT pays an annual dividend of $0.08 per share and has a dividend yield of 3.4%. SITE Centers pays an annual dividend of $0.52 per share and has a dividend yield of 4.1%. Orion Office REIT pays out -4.3% of its earnings in the form of a dividend. SITE Centers pays out 5.3% 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.

Profitability

This table compares Orion Office REIT and SITE Centers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orion Office REIT	-50.76%	-10.28%	-6.26%
SITE Centers	164.10%	34.20%	19.41%

Insider & Institutional Ownership

79.9% of Orion Office REIT shares are owned by institutional investors. Comparatively, 88.7% of SITE Centers shares are owned by institutional investors. 0.2% of Orion Office REIT shares are owned by company insiders. Comparatively, 10.1% of SITE Centers shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

SITE Centers beats Orion Office REIT on 15 of the 16 factors compared between the two stocks.

About Orion Office REIT

Orion Office REIT specializes in the ownership, acquisition and management of a diversified portfolio of mission-critical and corporate headquarters office buildings in high-quality suburban markets across the U.S. The portfolio is leased primarily on a single-tenant net lease basis to creditworthy tenants. The company's team of experienced industry leaders employs a proven, cycle-tested investment evaluation framework which serves as the lens through which capital allocation decisions are made for the current portfolio and future acquisitions.

About SITE Centers

SITE Centers is an owner and manager of open-air shopping centers located in suburban, high household income communities. The Company is a self-administered and self-managed REIT operating as a fully integrated real estate company, and is publicly traded on the New York Stock Exchange under the ticker symbol SITC.