Columbia Property Trust (NYSE: CXP) and Vornado Realty Trust (NYSE:VNO) are both mid-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.
Valuation and Earnings
This table compares Columbia Property Trust and Vornado Realty Trust’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Columbia Property Trust||$376.05 million||6.85||$171.48 million||$1.14||18.65|
|Vornado Realty Trust||$2.70 billion||5.57||$1.40 billion||$4.64||17.10|
Vornado Realty Trust has higher revenue and earnings than Columbia Property Trust. Vornado Realty Trust is trading at a lower price-to-earnings ratio than Columbia Property Trust, indicating that it is currently the more affordable of the two stocks.
Columbia Property Trust pays an annual dividend of $0.80 per share and has a dividend yield of 3.8%. Vornado Realty Trust pays an annual dividend of $2.40 per share and has a dividend yield of 3.0%. Columbia Property Trust pays out 70.2% of its earnings in the form of a dividend. Vornado Realty Trust pays out 51.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Institutional and Insider Ownership
64.8% of Columbia Property Trust shares are owned by institutional investors. Comparatively, 86.0% of Vornado Realty Trust shares are owned by institutional investors. 0.5% of Columbia Property Trust shares are owned by insiders. Comparatively, 9.7% of Vornado Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Columbia Property Trust and Vornado Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Columbia Property Trust||37.27%||5.55%||3.30%|
|Vornado Realty Trust||37.96%||4.51%||1.39%|
This is a breakdown of current ratings and target prices for Columbia Property Trust and Vornado Realty Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Columbia Property Trust||0||3||4||0||2.57|
|Vornado Realty Trust||0||3||7||0||2.70|
Columbia Property Trust currently has a consensus target price of $23.80, indicating a potential upside of 11.95%. Vornado Realty Trust has a consensus target price of $94.70, indicating a potential upside of 19.33%. Given Vornado Realty Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Vornado Realty Trust is more favorable than Columbia Property Trust.
Volatility & Risk
Columbia Property Trust has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, Vornado Realty Trust has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.
Vornado Realty Trust beats Columbia Property Trust on 10 of the 16 factors compared between the two stocks.
Columbia Property Trust Company Profile
Columbia Property Trust, Inc. operates as a real estate investment trust (REIT), which owns and operates commercial real estate properties. The Company’s primary objective is to generate long-term shareholder returns from a combination of steadily growing cash flows and appreciation in its net asset values, through the acquisition and ownership of office buildings located principally in high-barrier-to-entry markets. The Company’s segments include New York, San Francisco, Atlanta, Washington, D.C., Boston, Los Angeles and all other office markets. The all other office markets segment consists of properties in similar, low-barrier to entry geographic locations, in which the Company does not plan to make further investments. The Company conducts its business primarily through Columbia Property Trust Operating Partnership, L.P. (Columbia Property Trust OP), which acquires, develops, owns, leases and operates real properties directly through subsidiaries or through joint ventures.
Vornado Realty Trust Company Profile
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.
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