Vornado Realty Trust (NYSE: VNO) and Urstadt Biddle Properties (NYSE:UBA) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, risk, earnings, valuation and analyst recommendations.
Insider & Institutional Ownership
86.2% of Vornado Realty Trust shares are held by institutional investors. Comparatively, 60.1% of Urstadt Biddle Properties shares are held by institutional investors. 9.8% of Vornado Realty Trust shares are held by company insiders. Comparatively, 20.1% of Urstadt Biddle Properties shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Vornado Realty Trust has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Urstadt Biddle Properties has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500.
Valuation & Earnings
This table compares Vornado Realty Trust and Urstadt Biddle Properties’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Vornado Realty Trust||$2.51 billion||5.83||$906.91 million||$4.14||18.58|
|Urstadt Biddle Properties||$116.79 million||7.76||$33.71 million||$1.05||21.92|
Vornado Realty Trust has higher revenue and earnings than Urstadt Biddle Properties. Vornado Realty Trust is trading at a lower price-to-earnings ratio than Urstadt Biddle Properties, indicating that it is currently the more affordable of the two stocks.
Vornado Realty Trust pays an annual dividend of $2.40 per share and has a dividend yield of 3.1%. Urstadt Biddle Properties pays an annual dividend of $1.06 per share and has a dividend yield of 4.6%. Vornado Realty Trust pays out 58.0% of its earnings in the form of a dividend. Urstadt Biddle Properties pays out 101.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Urstadt Biddle Properties has increased its dividend for 17 consecutive years. Urstadt Biddle Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of recent recommendations for Vornado Realty Trust and Urstadt Biddle Properties, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Vornado Realty Trust||0||3||6||0||2.67|
|Urstadt Biddle Properties||0||3||0||0||2.00|
Vornado Realty Trust presently has a consensus price target of $89.89, indicating a potential upside of 16.88%. Urstadt Biddle Properties has a consensus price target of $21.50, indicating a potential downside of 6.60%. Given Vornado Realty Trust’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Vornado Realty Trust is more favorable than Urstadt Biddle Properties.
This table compares Vornado Realty Trust and Urstadt Biddle Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Vornado Realty Trust||35.23%||4.73%||1.43%|
|Urstadt Biddle Properties||44.45%||13.62%||5.65%|
Vornado Realty Trust beats Urstadt Biddle Properties on 10 of the 17 factors compared between the two stocks.
Vornado Realty Trust Company Profile
Vornado Realty Trust is a real estate investment trust (REIT). The Company conducts its business through Vornado Realty L.P. (the Operating Partnership). The Company operates through two segments: New York and Washington, DC. As of December 31, 2016, the Company’s New York segment consisted of 28.3 million square feet in 86 properties. Its properties include 1290 Avenue of the Americas, Two Penn Plaza, 770 Broadway and 90 Park Avenue. As of December 31, 2016, the Company’s Washington, DC segment consisted of 58 properties aggregating 14.7 million square feet, including 11.1 million square feet of office space in 44 properties, nine residential properties containing 3,156 units and a hotel property. Its properties include 2001 Jefferson Davis Highway, 223 23rd Street, 2221 South Clark Street and 1700 M Street. The Company’s interests in properties are held by the Operating Partnership. As of December 31, 2016, the Company owned the 3.7 million square foot Mart (theMart) in Chicago.
Urstadt Biddle Properties Company Profile
Urstadt Biddle Properties Inc. is a real estate investment trust, which is engaged in the acquisition, ownership and management of commercial real estate. The Company owns Ridgeway Shopping Center (Ridgeway) property, which is located in Stamford, Connecticut. Its segments include Ridgeway and All Other Operating Segments. Its primary business is the ownership of real estate investments with primary emphasis on properties in the metropolitan New York tri-state area outside of the City of New York. As of October 31, 2016, the Company’s properties consisted principally of neighborhood and community shopping centers and seven office buildings. As of March 30, 2017, the Company owned or had equity interests in 80 properties, including neighborhood and community shopping centers, office buildings, single tenant retail or restaurant properties and office/retail mixed-use properties located in four states throughout the United States.
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