Contrasting Equity Lifestyle Properties (NYSE:ELS) & Veris Residential (NYSE:VRE)

Veris Residential (NYSE:VRE) and Equity Lifestyle Properties (NYSE:ELS) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.

Risk & Volatility

Veris Residential has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500. Comparatively, Equity Lifestyle Properties has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Dividends

Veris Residential pays an annual dividend of $0.32 per share and has a dividend yield of 2.1%. Equity Lifestyle Properties pays an annual dividend of $2.06 per share and has a dividend yield of 3.3%. Veris Residential pays out -139.1% of its earnings in the form of a dividend. Equity Lifestyle Properties pays out 106.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Veris Residential has raised its dividend for 1 consecutive years and Equity Lifestyle Properties has raised its dividend for 21 consecutive years. Equity Lifestyle Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Veris Residential and Equity Lifestyle Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veris Residential	0	4	2	0	2.33
Equity Lifestyle Properties	0	4	7	1	2.75

Veris Residential presently has a consensus price target of $19.20, indicating a potential upside of 28.64%. Equity Lifestyle Properties has a consensus price target of $71.05, indicating a potential upside of 12.14%. Given Veris Residential’s higher probable upside, equities analysts clearly believe Veris Residential is more favorable than Equity Lifestyle Properties.

Earnings and Valuation

This table compares Veris Residential and Equity Lifestyle Properties”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veris Residential	$279.94 million	4.98	-$23.12 million	($0.23)	-64.89
Equity Lifestyle Properties	$1.53 billion	8.04	$367.01 million	$1.93	32.82

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

Profitability

This table compares Veris Residential and Equity Lifestyle Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Veris Residential	-7.84%	-1.89%	-0.77%
Equity Lifestyle Properties	24.13%	21.12%	6.49%

Insider and Institutional Ownership

93.0% of Veris Residential shares are owned by institutional investors. Comparatively, 97.2% of Equity Lifestyle Properties shares are owned by institutional investors. 16.4% of Veris Residential shares are owned by insiders. Comparatively, 1.4% of Equity Lifestyle Properties shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Equity Lifestyle Properties beats Veris Residential on 14 of the 18 factors compared between the two stocks.

About Veris Residential

Veris Residential, Inc. is a forward-thinking, environmentally and socially conscious real estate investment trust (REIT) that primarily owns, operates, acquires and develops holistically-inspired, Class A multifamily properties that meet the sustainability-conscious lifestyle needs of today’s residents while seeking to positively impact the communities it serves and the planet at large. The company is guided by an experienced management team and Board of Directors and is underpinned by leading corporate governance principle; a best-in-class and sustainable approach to operations; and an inclusive culture based on equality and meritocratic empowerment.

About Equity Lifestyle Properties

Equity LifeStyle Properties, Inc. is a real estate investment trust, which engages in the ownership and operation of lifestyle-oriented properties consisting primarily of manufactured home, and recreational vehicle communities. It operates through the following segments: Property Operations and Home Sales and Rentals Operations. The Property Operations segment owns and operates land lease properties. The Home Sales and Rentals Operations segment purchases, sells, and leases homes. The company was founded by James M. Hankins in December 1992 and is headquartered in Chicago, IL.