Analyzing Rouse Properties (RSE) and CoreSite Realty (COR)

Rouse Properties (NYSE: RSE) and CoreSite Realty (NYSE:COR) are both financials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, earnings, valuation and risk.

Earnings and Valuation

This table compares Rouse Properties and CoreSite Realty’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rouse Properties N/A N/A N/A ($0.26) -70.27
CoreSite Realty $400.35 million 9.20 $58.70 million $1.84 58.47

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

Profitability

This table compares Rouse Properties and CoreSite Realty’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rouse Properties -12.34% -9.28% -1.58%
CoreSite Realty 15.21% 15.35% 4.82%

Dividends

Rouse Properties pays an annual dividend of $0.54 per share and has a dividend yield of 3.0%. CoreSite Realty pays an annual dividend of $3.92 per share and has a dividend yield of 3.6%. Rouse Properties pays out -207.7% of its earnings in the form of a dividend. CoreSite Realty pays out 213.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rouse Properties has increased its dividend for 5 consecutive years and CoreSite Realty has increased its dividend for 7 consecutive years. CoreSite Realty is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

98.0% of CoreSite Realty shares are held by institutional investors. 1.5% of CoreSite Realty shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Rouse Properties and CoreSite Realty, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rouse Properties 0 0 0 0 N/A
CoreSite Realty 0 6 7 0 2.54

CoreSite Realty has a consensus price target of $109.73, indicating a potential upside of 1.99%. Given CoreSite Realty’s higher probable upside, analysts clearly believe CoreSite Realty is more favorable than Rouse Properties.

Summary

CoreSite Realty beats Rouse Properties on 12 of the 13 factors compared between the two stocks.

About Rouse Properties

Rouse Properties, Inc. is a United States-based real estate investment company. The Company owns and manages regional malls in protected markets or submarkets in the United States. The Company operates through the retail segment, which includes the operation, development and management of regional malls. The Company’s portfolio includes approximately 40 malls and retail centers in over 20 states totaling approximately 24.9 million square feet of retail space. The Company’s properties include Animas Valley Mall; Bayshore Mall; Birchwood Mall; Cache Valley Mall; Chesterfield Towne Center; Chula Vista Center; Colony Square Mall; Fig Garden Village; Grand Traverse Mall; Greenville Mall; Lakeland Square; Lansing Mall; Mall St. Vincent; NewPark Mall; North Plains Mall; Pierre Bossier Mall; Sikes Senter; Silver Lake Mall; Southland Center; Southland Mall; Spring Hill Mall; Valley Hills Mall; Vista Ridge Mall; Washington Park Mall; West Valley Mall; Westwood Mall, and White Mountain Mall.

About CoreSite Realty

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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