Financial Analysis: NSI (OTCMKTS:NIUWF) vs. SL Green Realty (NYSE:SLG)

NSI (OTCMKTS:NIUWF) and SL Green Realty (NYSE:SLG) are both real estate companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, profitability, earnings, analyst recommendations and dividends.

Dividends

NSI pays an annual dividend of C$0.15 per share and has a dividend yield of 0.8%. SL Green Realty pays an annual dividend of $2.47 per share and has a dividend yield of 4.4%. NSI pays out -10.8% of its earnings in the form of a dividend. SL Green Realty pays out -90.5% 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. SL Green Realty has raised its dividend for 1 consecutive years. SL Green Realty is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for NSI and SL Green Realty, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NSI	1	0	0	0	1.00
SL Green Realty	2	10	7	0	2.26

SL Green Realty has a consensus price target of $55.15, suggesting a potential downside of 1.84%. Given SL Green Realty’s stronger consensus rating and higher probable upside, analysts plainly believe SL Green Realty is more favorable than NSI.

Valuation and Earnings

This table compares NSI and SL Green Realty”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NSI	N/A	N/A	N/A	C($1.41)	-14.00
SL Green Realty	$983.27 million	4.08	-$88.28 million	($2.73)	-20.58

NSI has higher earnings, but lower revenue than SL Green Realty. SL Green Realty is trading at a lower price-to-earnings ratio than NSI, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

28.8% of NSI shares are owned by institutional investors. Comparatively, 90.0% of SL Green Realty shares are owned by institutional investors. 5.9% of SL Green Realty shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares NSI and SL Green Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NSI	N/A	N/A	N/A
SL Green Realty	-16.92%	-4.37%	-1.53%

Summary

SL Green Realty beats NSI on 9 of the 14 factors compared between the two stocks.

About NSI

NSI N.V. is a specialist commercial property investor and the only listed real estate investment trust (REIT) focused on well-located offices in economic growth regions in The Netherlands. The NSI team aims to maximise returns for its shareholders through pro-active management of its investment portfolio, value-add initiatives, and disciplined asset rotation. The portfolio, with a value of over one billion euros, is underpinned by a strong balance sheet, with significant capacity to fund both internal and external growth. By investing in an attractive space and a high level of services for its customers, NSI can generate sustainable and growing revenues to support an attractive level of dividends.

About SL Green Realty

3SL Green Realty Corp., Manhattan’s largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of June 30, 2022, SL Green held interests in 64 buildings totaling 34.4 million square feet. This included ownership interests in 26.3 million square feet of Manhattan buildings and 7.2 million square feet securing debt and preferred equity investments.