Vornado Realty Trust (NYSE:VNO) and Brandywine Realty Trust (NYSE:BDN) Financial Review

Vornado Realty Trust (NYSE:VNO) and Brandywine Realty Trust (NYSE:BDN) are both real estate companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Earnings & Valuation

This table compares Vornado Realty Trust and Brandywine Realty Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vornado Realty Trust	$1.83 billion	3.52	$904.96 million	$0.02	1,722.00
Brandywine Realty Trust	$484.45 million	1.04	-$178.25 million	($0.82)	-3.50

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

Risk and Volatility

Vornado Realty Trust has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500. Comparatively, Brandywine Realty Trust has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500.

Dividends

Vornado Realty Trust pays an annual dividend of $0.74 per share and has a dividend yield of 2.1%. Brandywine Realty Trust pays an annual dividend of $0.32 per share and has a dividend yield of 11.1%. Vornado Realty Trust pays out 3,700.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brandywine Realty Trust pays out -39.0% of its earnings in the form of a dividend. Brandywine Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

90.0% of Vornado Realty Trust shares are owned by institutional investors. Comparatively, 87.3% of Brandywine Realty Trust shares are owned by institutional investors. 9.0% of Vornado Realty Trust shares are owned by insiders. Comparatively, 4.5% of Brandywine Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Vornado Realty Trust and Brandywine Realty Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vornado Realty Trust	4	5	4	0	2.00
Brandywine Realty Trust	3	3	0	0	1.50

Vornado Realty Trust presently has a consensus target price of $39.55, indicating a potential upside of 14.82%. Brandywine Realty Trust has a consensus target price of $3.50, indicating a potential upside of 21.78%. Given Brandywine Realty Trust’s higher possible upside, analysts plainly believe Brandywine Realty Trust is more favorable than Vornado Realty Trust.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vornado Realty Trust	3.71%	1.37%	0.43%
Brandywine Realty Trust	-28.62%	-18.52%	-4.07%

Summary

Vornado Realty Trust beats Brandywine Realty Trust on 13 of the 16 factors compared between the two stocks.

About Vornado Realty Trust

Vornado Realty Trust is a fully – integrated equity real estate investment trust.

About Brandywine Realty Trust

Brandywine Realty Trust (NYSE: BDN) is one of the largest, publicly traded, full-service, integrated real estate companies in the United States with a core focus in the Philadelphia and Austin markets. Organized as a real estate investment trust (REIT), we own, develop, lease and manage an urban, town center and transit-oriented portfolio comprising 160 properties and 22.6 million square feet as of September 30, 2023 which excludes assets held for sale. Our purpose is to shape, connect and inspire the world around us through our expertise, the relationships we foster, the communities in which we live and work, and the history we build together.