Vornado Realty Trust (NYSE: VNO) and Monmouth R.E. Inv. (NYSE:MNR) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.
This is a breakdown of current ratings and price targets for Vornado Realty Trust and Monmouth R.E. Inv., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Vornado Realty Trust||0||4||6||0||2.60|
|Monmouth R.E. Inv.||0||1||4||0||2.80|
Volatility and Risk
Vornado Realty Trust has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, Monmouth R.E. Inv. has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.
Vornado Realty Trust pays an annual dividend of $2.40 per share and has a dividend yield of 3.3%. Monmouth R.E. Inv. pays an annual dividend of $0.68 per share and has a dividend yield of 3.9%. Vornado Realty Trust pays out 58.0% of its earnings in the form of a dividend. Monmouth R.E. Inv. pays out 212.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Vornado Realty Trust has raised its dividend for 3 consecutive years.
Earnings and Valuation
This table compares Vornado Realty Trust and Monmouth R.E. Inv.’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Vornado Realty Trust||$2.51 billion||5.44||$906.91 million||$4.14||17.34|
|Monmouth R.E. Inv.||$97.66 million||13.69||$40.27 million||$0.32||54.56|
Vornado Realty Trust has higher revenue and earnings than Monmouth R.E. Inv.. Vornado Realty Trust is trading at a lower price-to-earnings ratio than Monmouth R.E. Inv., indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
86.0% of Vornado Realty Trust shares are owned by institutional investors. Comparatively, 63.1% of Monmouth R.E. Inv. shares are owned by institutional investors. 9.7% of Vornado Realty Trust shares are owned by company insiders. Comparatively, 5.3% of Monmouth R.E. Inv. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Vornado Realty Trust and Monmouth R.E. Inv.’s 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%|
|Monmouth R.E. Inv.||30.84%||7.65%||2.58%|
Vornado Realty Trust beats Monmouth R.E. Inv. on 11 of the 17 factors compared between the two stocks.
About Vornado Realty Trust
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.
About Monmouth R.E. Inv.
Monmouth Real Estate Investment Corporation is a real estate investment trust (REIT). The Company’s primary business is the ownership of real estate. Its investment focus is to own single tenant, industrial buildings and leased to investment-grade tenants or their subsidiaries on long-term net leases. In addition, the Company owns a portfolio of REIT investment securities. Its assets are situated near airports, transportation hubs and manufacturing plants. The Company’s property portfolio consists of approximately 109 properties located across 30 states, containing a total of approximately 18.9 million rentable square feet.
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