Contrasting CoreSite Realty Corporation (COR) and The Competition

CoreSite Realty Corporation (NYSE: COR) is one of 34 publicly-traded companies in the “Retail REITs” industry, but how does it contrast to its peers? We will compare CoreSite Realty Corporation to related businesses based on the strength of its earnings, valuation, risk, dividends, profitability, institutional ownership and analyst recommendations.

Dividends

CoreSite Realty Corporation pays an annual dividend of $3.60 per share and has a dividend yield of 3.3%. CoreSite Realty Corporation pays out 195.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Retail REITs” companies pay a dividend yield of 4.5% and pay out 141.7% of their earnings in the form of a dividend. CoreSite Realty Corporation has raised its dividend for 6 consecutive years. CoreSite Realty Corporation lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk and Volatility

CoreSite Realty Corporation has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, CoreSite Realty Corporation’s peers have a beta of 0.68, indicating that their average stock price is 33% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for CoreSite Realty Corporation and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CoreSite Realty Corporation 0 6 5 0 2.45
CoreSite Realty Corporation Competitors 137 984 1088 21 2.45

CoreSite Realty Corporation presently has a consensus price target of $105.56, indicating a potential downside of 4.50%. As a group, “Retail REITs” companies have a potential upside of 21.06%. Given CoreSite Realty Corporation’s peers higher probable upside, analysts clearly believe CoreSite Realty Corporation has less favorable growth aspects than its peers.

Institutional and Insider Ownership

98.3% of CoreSite Realty Corporation shares are owned by institutional investors. Comparatively, 84.9% of shares of all “Retail REITs” companies are owned by institutional investors. 1.5% of CoreSite Realty Corporation shares are owned by company insiders. Comparatively, 9.4% of shares of all “Retail REITs” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
CoreSite Realty Corporation 15.21% 15.35% 4.82%
CoreSite Realty Corporation Competitors 21.89% 5.24% 2.93%

Valuation & Earnings

This table compares CoreSite Realty Corporation and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
CoreSite Realty Corporation $444.59 million $232.47 million 60.07
CoreSite Realty Corporation Competitors $726.42 million $482.85 million 25.80

CoreSite Realty Corporation’s peers have higher revenue and earnings than CoreSite Realty Corporation. CoreSite Realty Corporation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

CoreSite Realty Corporation peers beat CoreSite Realty Corporation on 11 of the 15 factors compared.

CoreSite Realty Corporation Company Profile

CoreSite Realty Corporation (CoreSite) is an integrated, self-administered and self-managed real estate investment trust. The Company, through its controlling interest in CoreSite, L.P., is engaged in the business of ownership, acquisition, construction and operation of data centers across a range of markets in the United States, including the Northern Virginia, New York and San Francisco Bay areas, Chicago, Los Angeles, Boston, Miami and Denver. The enterprises, network operators, cloud providers and supporting service providers choose CoreSite to connect and protect their data, applications and computing workloads. Its offerings include the CoreSite Open Cloud Exchange and the Any2 Internet Exchange. As of December 31, 2016, it had offered cloud-enabled, network data center campuses with over 20,000 interconnections across its portfolio and direct access to carriers and Internet service providers, cloud and information technology service providers, and inter site connectivity.

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