Financial Survey: Vornado Realty Trust (NYSE:VNO) vs. Mackenzie Realty Capital (NASDAQ:MKZR)

Vornado Realty Trust (NYSE:VNO) and Mackenzie Realty Capital (NASDAQ:MKZR) are both real estate companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, earnings, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Vornado Realty Trust and Mackenzie Realty Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vornado Realty Trust	4	6	4	0	2.00
Mackenzie Realty Capital	1	0	0	0	1.00

Vornado Realty Trust currently has a consensus target price of $39.33, indicating a potential upside of 1.02%. Given Vornado Realty Trust’s stronger consensus rating and higher possible upside, research analysts plainly believe Vornado Realty Trust is more favorable than Mackenzie Realty Capital.

Earnings and Valuation

This table compares Vornado Realty Trust and Mackenzie Realty Capital”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vornado Realty Trust	$1.81 billion	4.02	$904.96 million	$3.64	10.70
Mackenzie Realty Capital	$19.38 million	0.17	-$25.92 million	($6.15)	-0.24

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

Profitability

This table compares Vornado Realty Trust and Mackenzie Realty Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vornado Realty Trust	3.71%	1.37%	0.43%
Mackenzie Realty Capital	-90.30%	-18.99%	-7.07%

Dividends

Vornado Realty Trust pays an annual dividend of $0.74 per share and has a dividend yield of 1.9%. Mackenzie Realty Capital pays an annual dividend of $2.00 per share and has a dividend yield of 133.3%. Vornado Realty Trust pays out 20.3% of its earnings in the form of a dividend. Mackenzie Realty Capital pays out -32.5% 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. Mackenzie Realty Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

Vornado Realty Trust has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500. Comparatively, Mackenzie Realty Capital has a beta of -0.76, indicating that its share price is 176% less volatile than the S&P 500.

Insider and Institutional Ownership

90.0% of Vornado Realty Trust shares are held by institutional investors. 9.0% of Vornado Realty Trust shares are held by company insiders. Comparatively, 6.3% of Mackenzie Realty Capital shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Vornado Realty Trust beats Mackenzie Realty Capital on 14 of the 16 factors compared between the two stocks.

About Vornado Realty Trust

Vornado Realty Trust is a fully – integrated equity real estate investment trust.

About Mackenzie Realty Capital

MacKenzie Realty Capital Inc. is a REIT which focused on investing in multifamily housing and office real estate properties located principally in the United States. MacKenzie Realty Capital Inc. is based in ORINDA, Calif.