Vornado Realty Trust (VNO) and Its Competitors Head-To-Head Review

Vornado Realty Trust (NYSE:VNO) is one of 59 publicly-traded companies in the “Office REITs” industry, but how does it contrast to its peers? We will compare Vornado Realty Trust to similar businesses based on the strength of its valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.

Volatility and Risk

Vornado Realty Trust has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500. Comparatively, Vornado Realty Trust’s peers have a beta of 1.02, meaning that their average stock price is 2% 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%. Vornado Realty Trust pays out -255.2% of its earnings in the form of a dividend. As a group, “Office REITs” companies pay a dividend yield of 4.9% and pay out -556.7% of their earnings in the form of a dividend. Vornado Realty Trust lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation & Earnings

This table compares Vornado Realty Trust and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Vornado Realty Trust	$1.81 billion	$904.96 million	-119.63
Vornado Realty Trust Competitors	$530.46 million	-$49.56 million	14.89

Vornado Realty Trust has higher revenue and earnings than its peers. Vornado Realty Trust is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

90.0% of Vornado Realty Trust shares are owned by institutional investors. Comparatively, 61.2% of shares of all “Office REITs” companies are owned by institutional investors. 9.0% of Vornado Realty Trust shares are owned by insiders. Comparatively, 8.7% of shares of all “Office REITs” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vornado Realty Trust	0.50%	0.19%	0.06%
Vornado Realty Trust Competitors	-16.89%	-7.45%	-0.14%

Analyst Ratings

This is a summary of current ratings and recommmendations for Vornado Realty Trust and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vornado Realty Trust	4	5	4	0	2.00
Vornado Realty Trust Competitors	946	2834	2691	25	2.28

Vornado Realty Trust presently has a consensus target price of $38.91, indicating a potential upside of 12.15%. As a group, “Office REITs” companies have a potential upside of 2.09%. Given Vornado Realty Trust’s higher possible upside, analysts plainly believe Vornado Realty Trust is more favorable than its peers.

Summary

Vornado Realty Trust beats its peers on 9 of the 15 factors compared.

Vornado Realty Trust Company Profile

Vornado Realty Trust is a real estate investment trust focused primarily on owning, managing and redeveloping commercial properties. Its portfolio is concentrated in New York City, particularly Manhattan, and includes office buildings and retail properties. The company has also held properties in other major U.S. markets, including Washington, D.C., and San Francisco. Vornado’s activities include leasing space to businesses and retailers, operating its properties, and pursuing redevelopment projects to update and reposition its real estate.