Head-To-Head Comparison: SL Green Realty (SLG) and Its Rivals

SL Green Realty (NYSE:SLG) is one of 59 public companies in the “Office REITs” industry, but how does it weigh in compared to its peers? We will compare SL Green Realty to similar businesses based on the strength of its analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.

Institutional & Insider Ownership

90.0% of SL Green Realty shares are held by institutional investors. Comparatively, 61.4% of shares of all “Office REITs” companies are held by institutional investors. 5.9% of SL Green Realty shares are held by company insiders. Comparatively, 8.7% of shares of all “Office REITs” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares SL Green Realty and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
SL Green Realty	$1.00 billion	-$88.28 million	-24.69
SL Green Realty Competitors	$530.40 million	-$49.56 million	75.84

SL Green Realty has higher revenue, but lower earnings than its peers. SL Green Realty is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

SL Green Realty pays an annual dividend of $2.47 per share and has a dividend yield of 4.9%. SL Green Realty pays out -119.9% of its earnings in the form of a dividend. As a group, “Office REITs” companies pay a dividend yield of 5.0% and pay out -468.0% of their earnings in the form of a dividend. SL Green Realty has raised its dividend for 1 consecutive years. SL Green Realty lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a summary of current ratings for SL Green Realty and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SL Green Realty	2	9	6	0	2.24
SL Green Realty Competitors	943	2821	2687	24	2.28

SL Green Realty presently has a consensus price target of $54.50, indicating a potential upside of 7.14%. As a group, “Office REITs” companies have a potential upside of 6.26%. Given SL Green Realty’s higher probable upside, equities research analysts plainly believe SL Green Realty is more favorable than its peers.

Profitability

This table compares SL Green Realty and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SL Green Realty	-12.03%	-3.18%	-1.11%
SL Green Realty Competitors	-17.66%	-7.45%	-0.22%

Volatility and Risk

SL Green Realty has a beta of 1.66, meaning that its share price is 66% more volatile than the S&P 500. Comparatively, SL Green Realty’s peers have a beta of 1.05, meaning that their average share price is 5% more volatile than the S&P 500.

Summary

SL Green Realty peers beat SL Green Realty on 9 of the 15 factors compared.

About SL Green Realty

3SL Green Realty Corp., Manhattan’s largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of June 30, 2022, SL Green held interests in 64 buildings totaling 34.4 million square feet. This included ownership interests in 26.3 million square feet of Manhattan buildings and 7.2 million square feet securing debt and preferred equity investments.