Contrasting Veris Residential (NYSE:VRE) & Vornado Realty Trust (NYSE:VNO)

Veris Residential (NYSE:VRE) and Vornado Realty Trust (NYSE:VNO) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, institutional ownership, valuation, dividends and analyst recommendations.

Risk & Volatility

Veris Residential has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500. Comparatively, Vornado Realty Trust has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Veris Residential and Vornado Realty Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veris Residential	0	2	2	0	2.50
Vornado Realty Trust	2	6	3	0	2.09

Veris Residential presently has a consensus price target of $18.25, suggesting a potential upside of 15.73%. Vornado Realty Trust has a consensus price target of $37.61, suggesting a potential downside of 6.69%. Given Veris Residential’s stronger consensus rating and higher probable upside, equities analysts plainly believe Veris Residential is more favorable than Vornado Realty Trust.

Dividends

Veris Residential pays an annual dividend of $0.32 per share and has a dividend yield of 2.0%. Vornado Realty Trust pays an annual dividend of $0.74 per share and has a dividend yield of 1.8%. Veris Residential pays out -188.2% of its earnings in the form of a dividend. Vornado Realty Trust pays out -255.2% 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.

Insider and Institutional Ownership

93.0% of Veris Residential shares are held by institutional investors. Comparatively, 90.0% of Vornado Realty Trust shares are held by institutional investors. 16.0% of Veris Residential shares are held by company insiders. Comparatively, 8.1% of Vornado Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Veris Residential and Vornado Realty Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veris Residential	$289.57 million	5.06	-$107.26 million	($0.17)	-92.76
Vornado Realty Trust	$1.77 billion	4.34	$105.49 million	($0.29)	-139.00

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Veris Residential	-5.70%	-4.97%	-2.02%
Vornado Realty Trust	0.46%	1.72%	0.48%

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 Vornado Realty Trust

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