Analyzing Empire State Realty Trust (NYSE:ESRT) and Kilroy Realty (NYSE:KRC)

Kilroy Realty (NYSE:KRC) and Empire State Realty Trust (NYSE:ESRT) are both real estate companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and price targets for Kilroy Realty and Empire State Realty Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kilroy Realty	2	9	4	0	2.13
Empire State Realty Trust	2	1	0	0	1.33

Kilroy Realty presently has a consensus target price of $38.54, indicating a potential upside of 8.29%. Empire State Realty Trust has a consensus target price of $5.00, indicating a potential downside of 4.69%. Given Kilroy Realty’s stronger consensus rating and higher probable upside, analysts plainly believe Kilroy Realty is more favorable than Empire State Realty Trust.

Dividends

Kilroy Realty pays an annual dividend of $2.16 per share and has a dividend yield of 6.1%. Empire State Realty Trust pays an annual dividend of $0.14 per share and has a dividend yield of 2.7%. Kilroy Realty pays out 900.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Empire State Realty Trust pays out 350.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk and Volatility

Kilroy Realty has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, Empire State Realty Trust has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500.

Profitability

This table compares Kilroy Realty and Empire State Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kilroy Realty	2.63%	0.52%	0.27%
Empire State Realty Trust	0.30%	0.13%	0.05%

Insider and Institutional Ownership

94.2% of Kilroy Realty shares are held by institutional investors. Comparatively, 67.1% of Empire State Realty Trust shares are held by institutional investors. 0.8% of Kilroy Realty shares are held by company insiders. Comparatively, 15.2% of Empire State Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Kilroy Realty and Empire State Realty Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kilroy Realty	$1.11 billion	3.72	$276.12 million	$0.24	148.28
Empire State Realty Trust	$768.27 million	1.18	$47.60 million	$0.04	131.15

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

Summary

Kilroy Realty beats Empire State Realty Trust on 13 of the 16 factors compared between the two stocks.

About Kilroy Realty

Kilroy Realty Corporation is a real estate investment trust that owns, develops and operates office and life science properties. Its portfolio includes workplaces and research facilities designed to serve businesses in technology, media, entertainment and the life sciences. The company focuses on major coastal markets, including the San Francisco Bay Area, Los Angeles, San Diego and Seattle, as well as Austin, Texas. Its properties include office buildings, laboratory space and mixed-use developments.

About Empire State Realty Trust

Empire State Realty Trust, Inc. is a real estate investment trust that owns, manages and leases office and retail properties, primarily in Manhattan and the broader New York metropolitan area. Its portfolio includes the Empire State Building and other commercial properties. The company’s business includes leasing office and retail space to tenants, as well as operating the Empire State Building Observatory, a visitor attraction offering views of New York City. Empire State Realty Trust became a publicly traded company in 2013.