VEREIT (NYSE: VER) is one of 87 publicly-traded companies in the “Commercial REITs” industry, but how does it contrast to its rivals? We will compare VEREIT to similar businesses based on the strength of its analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.
Valuation & Earnings
This table compares VEREIT and its rivals gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|VEREIT||$1.40 billion||$1.12 billion||-71.72|
|VEREIT Competitors||$478.44 million||$302.43 million||31.91|
VEREIT has higher revenue and earnings than its rivals. VEREIT is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
This table compares VEREIT and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
VEREIT pays an annual dividend of $0.55 per share and has a dividend yield of 7.0%. VEREIT pays out -500.0% of its earnings in the form of a dividend. As a group, “Commercial REITs” companies pay a dividend yield of 4.0% and pay out 216.4% of their earnings in the form of a dividend. VEREIT is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.
Insider & Institutional Ownership
85.8% of VEREIT shares are owned by institutional investors. Comparatively, 69.5% of shares of all “Commercial REITs” companies are owned by institutional investors. 0.1% of VEREIT shares are owned by company insiders. Comparatively, 9.0% of shares of all “Commercial REITs” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This is a breakdown of current recommendations and price targets for VEREIT and its rivals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
VEREIT currently has a consensus target price of $10.00, suggesting a potential upside of 26.74%. As a group, “Commercial REITs” companies have a potential upside of 7.44%. Given VEREIT’s stronger consensus rating and higher probable upside, research analysts clearly believe VEREIT is more favorable than its rivals.
Volatility and Risk
VEREIT has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, VEREIT’s rivals have a beta of 0.80, indicating that their average share price is 20% less volatile than the S&P 500.
VEREIT beats its rivals on 8 of the 15 factors compared.
VEREIT, Inc. is a full-service real estate operating company. The Company operates through two business segments: real estate investment (REI) segment and investment management segment, Cole Capital. As of December 31, 2016, through its REI segment, the Company owned and managed a portfolio of 4,142 retail, restaurant, office and industrial real estate properties with an aggregate of 93.3 million square feet, which are located in 49 states, Puerto Rico and Canada. Through its Cole Capital segment, the Company is responsible for raising capital for and managing the affairs of certain non-listed real estate investment trusts (the Cole REITs) on a day-to-day basis, identifying and making acquisitions and investments on the Cole REITs’ behalf. The Cole Capital segment sponsors and manages direct investment real estate programs, which primarily include over four publicly registered, non-traded REITs.
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