Reviewing New York REIT (NYRT) & Vereit (NYSE:VER)

Vereit (NYSE: VER) and New York REIT (NYSE:NYRT) are both financials companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, profitability, valuation and risk.

Institutional & Insider Ownership

85.2% of Vereit shares are held by institutional investors. Comparatively, 70.0% of New York REIT shares are held by institutional investors. 0.1% of Vereit shares are held by company insiders. Comparatively, 0.1% of New York REIT shares are held by company 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.

Valuation and Earnings

This table compares Vereit and New York REIT’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vereit $1.45 billion 4.97 -$195.86 million ($0.13) -57.08
New York REIT $160.27 million 4.37 -$82.52 million ($0.50) -8.34

New York REIT has lower revenue, but higher earnings than Vereit. Vereit is trading at a lower price-to-earnings ratio than New York REIT, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Vereit and New York REIT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vereit -3.76% -0.61% -0.34%
New York REIT N/A -1.95% -0.86%

Volatility & Risk

Vereit has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, New York REIT has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Vereit and New York REIT, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vereit 0 1 2 0 2.67
New York REIT 0 1 1 0 2.50

Vereit currently has a consensus price target of $9.50, suggesting a potential upside of 28.03%. New York REIT has a consensus price target of $8.38, suggesting a potential upside of 100.84%. Given New York REIT’s higher probable upside, analysts plainly believe New York REIT is more favorable than Vereit.

Dividends

Vereit pays an annual dividend of $0.55 per share and has a dividend yield of 7.4%. New York REIT does not pay a dividend. Vereit pays out -423.1% of its earnings in the form of a dividend. Vereit has increased its dividend for 2 consecutive years and New York REIT has increased its dividend for 3 consecutive years.

Summary

Vereit beats New York REIT on 11 of the 17 factors compared between the two stocks.

Vereit Company Profile

VEREIT, Inc. is a full-service real estate operating company. The Company owns and manages a diversified portfolio of retail, restaurant, office and industrial real estate assets. It operates through two segments: real estate investment (REI) segment and its investment management segment, Cole Capital. The Company manages real estate investments on behalf of the Cole Capital. The Cole Capital segment sponsors and manages direct investment real estate programs, which primarily include publicly registered, non-traded real estate investment trusts (REITs). The Cole Capital segment’s operations are conducted through Cole Capital Advisors, Inc. (CCA), which is a subsidiary of the Operating Partnership. The Company’s portfolio consists of Industrial distribution, shopping centers and single-tenant retail. The Company serves in various industries, such as casual dining restaurants, manufacturing, quick service restaurants, grocery and super market, home and garden retail and logistics.

New York REIT Company Profile

New York REIT, Inc. is a real estate investment trust. The Company owns a portfolio of commercial real estate. The Company’s business is primarily conducted through New York Recovery Operating Partnership, L.P. As of December 31, 2016, the Company owned 19 properties, which aggregated 3.3 million rentable square feet. The Company holds interests in properties of various types, such as office, retail, hotel, parking and storage. The Company’s properties include Design Center, 416 Washington Street, 50 Varick Street, 1440 Broadway, One Worldwide Plaza, 256 West 38th Street, 229 West 36th Street, 333 West 34th Street, 367-387 Bleecker Street, 33 West 56th Street (garage) and 350 West 42nd Street.

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