Contrasting Veris Residential (NYSE:VRE) & Armada Hoffler Properties (NYSE:AHH)

Veris Residential (NYSE:VRE) and Armada Hoffler Properties (NYSE:AHH) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.

Earnings & Valuation

This table compares Veris Residential and Armada Hoffler Properties”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veris Residential	$271.49 million	5.08	-$23.12 million	($0.32)	-46.19
Armada Hoffler Properties	$629.63 million	1.14	$35.65 million	$0.08	88.55

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

Volatility and Risk

Veris Residential has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, Armada Hoffler Properties has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Dividends

Veris Residential pays an annual dividend of $0.32 per share and has a dividend yield of 2.2%. Armada Hoffler Properties pays an annual dividend of $0.56 per share and has a dividend yield of 7.9%. Veris Residential pays out -100.0% of its earnings in the form of a dividend. Armada Hoffler Properties pays out 700.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Veris Residential has increased its dividend for 1 consecutive years.

Institutional and Insider Ownership

93.0% of Veris Residential shares are held by institutional investors. Comparatively, 66.3% of Armada Hoffler Properties shares are held by institutional investors. 16.4% of Veris Residential shares are held by insiders. Comparatively, 10.2% of Armada Hoffler Properties shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Veris Residential and Armada Hoffler Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veris Residential	0	3	1	0	2.25
Armada Hoffler Properties	0	1	2	0	2.67

Veris Residential currently has a consensus price target of $18.50, indicating a potential upside of 25.15%. Armada Hoffler Properties has a consensus price target of $8.83, indicating a potential upside of 24.69%. Given Veris Residential’s higher probable upside, equities research analysts clearly believe Veris Residential is more favorable than Armada Hoffler Properties.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Veris Residential	-11.02%	-2.62%	-1.09%
Armada Hoffler Properties	3.24%	2.98%	0.81%

Summary

Armada Hoffler Properties beats Veris Residential on 10 of the 17 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 Armada Hoffler Properties

Armada Hoffler Properties, Inc. (the “Company”) is a vertically integrated, self-managed real estate investment trust (“REIT”) with over four decades of experience developing, building, acquiring, and managing high-quality retail, office, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. In addition to the ownership of the Company’s operating property portfolio, the Company develops and builds properties for its own account and through joint ventures between the Company and unaffiliated partners and also invests in development projects through real estate financing arrangements. The Company also provides general construction and development services to third-party clients. The Company’s construction and development experience includes mid- and high-rise office buildings, retail strip malls, retail power centers, multifamily apartment communities, hotels and conference centers, single- and multi-tenant industrial, distribution, and manufacturing facilities, educational, medical, and special purpose facilities, government projects, parking garages, and mixed-use town centers. The Company is the sole general partner of Armada Hoffler, L.P. (the “Operating Partnership”) and, as of March 31, 2024, owned 75.5% of the economic interest in the Operating Partnership, of which 0.1% is held as general partnership units. The operations of the Company are conducted primarily through the Operating Partnership and the wholly owned subsidiaries thereof.