Critical Contrast: Cedar Realty Trust (CDR) versus Vereit (VER)

Cedar Realty Trust (NYSE:CDR) and Vereit (NYSE:VER) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Cedar Realty Trust and Vereit, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cedar Realty Trust 1 2 2 0 2.20
Vereit 0 3 3 0 2.50

Cedar Realty Trust currently has a consensus target price of $5.17, suggesting a potential upside of 33.51%. Vereit has a consensus target price of $8.67, suggesting a potential upside of 21.55%. Given Cedar Realty Trust’s higher probable upside, equities research analysts plainly believe Cedar Realty Trust is more favorable than Vereit.

Risk and Volatility

Cedar Realty Trust has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, Vereit has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500.

Insider & Institutional Ownership

93.0% of Cedar Realty Trust shares are owned by institutional investors. Comparatively, 87.7% of Vereit shares are owned by institutional investors. 4.4% of Cedar Realty Trust shares are owned by insiders. Comparatively, 0.1% of Vereit shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Cedar Realty Trust and Vereit’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cedar Realty Trust $146.01 million 2.42 $19.14 million $0.55 7.04
Vereit $1.25 billion 5.51 $31.81 million $0.70 10.19

Vereit has higher revenue and earnings than Cedar Realty Trust. Cedar Realty Trust is trading at a lower price-to-earnings ratio than Vereit, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cedar Realty Trust and Vereit’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cedar Realty Trust 3.25% 1.20% 0.40%
Vereit -4.44% -0.40% -0.22%

Dividends

Cedar Realty Trust pays an annual dividend of $0.20 per share and has a dividend yield of 5.2%. Vereit pays an annual dividend of $0.55 per share and has a dividend yield of 7.7%. Cedar Realty Trust pays out 36.4% of its earnings in the form of a dividend. Vereit pays out 78.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

About Cedar Realty Trust

Cedar Realty Trust, Inc. is a fully-integrated real estate investment trust which focuses on the ownership, operation and redevelopment of grocery-anchored shopping centers in high-density urban markets from Washington, D.C. to Boston. The Company's portfolio (excluding properties treated as "held for sale") comprises 58 properties, with approximately 8.7 million square feet of gross leasable area.

About Vereit

VEREIT is a full-service real estate operating company which owns and manages one of the largest portfolios of single-tenant commercial properties in the U.S. The Company has a total asset book value of $14.3 billion including approximately 4,000 properties and 94.6 million square feet. VEREIT's business model provides equity capital to creditworthy corporations in return for long-term leases on their properties. VEREIT is a publicly traded Maryland corporation listed on the New York Stock Exchange.

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