Corporate Office Properties Trust (NYSE: OFC) and NorthStar Realty Europe Corp. (NYSE:NRE) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.
Earnings and Valuation
This table compares Corporate Office Properties Trust and NorthStar Realty Europe Corp.’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Corporate Office Properties Trust||$578.09 million||5.58||$290.41 million||$0.73||44.60|
|NorthStar Realty Europe Corp.||$131.25 million||5.30||$37.01 million||($0.45)||-27.98|
Corporate Office Properties Trust has higher revenue and earnings than NorthStar Realty Europe Corp.. NorthStar Realty Europe Corp. is trading at a lower price-to-earnings ratio than Corporate Office Properties Trust, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for Corporate Office Properties Trust and NorthStar Realty Europe Corp., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Corporate Office Properties Trust||2||7||0||0||1.78|
|NorthStar Realty Europe Corp.||0||0||0||0||N/A|
Corporate Office Properties Trust presently has a consensus target price of $33.33, suggesting a potential upside of 2.38%. Given Corporate Office Properties Trust’s higher probable upside, research analysts plainly believe Corporate Office Properties Trust is more favorable than NorthStar Realty Europe Corp..
This table compares Corporate Office Properties Trust and NorthStar Realty Europe Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Corporate Office Properties Trust||15.86%||6.55%||2.48%|
|NorthStar Realty Europe Corp.||-18.57%||7.73%||2.46%|
Institutional & Insider Ownership
69.9% of NorthStar Realty Europe Corp. shares are held by institutional investors. 0.6% of Corporate Office Properties Trust shares are held by insiders. Comparatively, 2.2% of NorthStar Realty Europe Corp. shares are held by 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.
Volatility and Risk
Corporate Office Properties Trust has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, NorthStar Realty Europe Corp. has a beta of 2.5, suggesting that its stock price is 150% more volatile than the S&P 500.
Corporate Office Properties Trust pays an annual dividend of $1.10 per share and has a dividend yield of 3.4%. NorthStar Realty Europe Corp. pays an annual dividend of $0.60 per share and has a dividend yield of 4.8%. Corporate Office Properties Trust pays out 150.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NorthStar Realty Europe Corp. pays out -133.3% of its earnings in the form of a dividend. NorthStar Realty Europe Corp. is clearly the better dividend stock, given its higher yield and lower payout ratio.
Corporate Office Properties Trust beats NorthStar Realty Europe Corp. on 7 of the 13 factors compared between the two stocks.
About Corporate Office Properties Trust
Corporate Office Properties Trust is a fully-integrated and self-managed real estate investment trust (REIT). The Company owns, manages, leases, develops and acquires office and data center properties. The Company’s segments are Defense/IT Locations; Regional Office; operating wholesale data center, and other. As of December 31, 2016, the Company’s properties included 164 operating office properties totaling 17.2 million square feet, including 13 triple-net leased, single-tenant data center properties; 11 office properties under construction or redevelopment; 1,028 acres of land controlled for future development, and a wholesale data center with a critical load of 19.25 megawatts. The Company conducts all of its operations through Corporate Office Properties, L.P. (COPLP) and subsidiaries (collectively, the Operating Partnership). COPLP owns real estate both directly and through subsidiary partnerships and limited liability companies (LLCs).
About NorthStar Realty Europe Corp.
NorthStar Realty Europe Corp. is a real estate investment trust (REIT). The Company is a European focused commercial real estate company with primary office properties in cities within Germany, the United Kingdom and France. Its objective is to provide its stockholders with stable and recurring cash flow supplemented by capital growth over time. The Company conducts its business through two segments: Real Estate and Corporate. Its European commercial real estate business is primarily focused on office properties. Its portfolio consists of approximately 48 properties and a total of approximately 495,588 square meters of rentable space, located in various European markets, including Frankfurt, Hamburg, Berlin, London, Paris, Amsterdam, Milan, Brussels and Madrid. Its overall portfolio is over 87% occupied. In addition, it owns over two hotels, which are leased to third-party operators. It is externally managed and advised by an affiliate of NorthStar Asset Management Group Inc. (NSAM).
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