Whitestone REIT (NYSE: WSR) and Vornado Realty Trust (NYSE:VNO) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, valuation, dividends, risk and earnings.

Institutional and Insider Ownership

36.9% of Whitestone REIT shares are held by institutional investors. Comparatively, 87.2% of Vornado Realty Trust shares are held by institutional investors. 5.3% of Whitestone REIT shares are held by insiders. Comparatively, 9.8% of Vornado Realty Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Whitestone REIT has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Vornado Realty Trust has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Whitestone REIT and Vornado Realty Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Whitestone REIT 1 1 2 0 2.25
Vornado Realty Trust 0 4 4 0 2.50

Whitestone REIT currently has a consensus price target of $14.67, indicating a potential upside of 14.49%. Vornado Realty Trust has a consensus price target of $99.14, indicating a potential upside of 33.87%. Given Vornado Realty Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Vornado Realty Trust is more favorable than Whitestone REIT.

Profitability

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

Net Margins Return on Equity Return on Assets
Whitestone REIT 4.36% 1.69% 0.54%
Vornado Realty Trust 37.96% 4.51% 1.39%

Earnings and Valuation

This table compares Whitestone REIT and Vornado Realty Trust’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Whitestone REIT $112.35 million 4.39 $49.43 million $0.13 98.55
Vornado Realty Trust $2.70 billion 5.20 $1.40 billion $4.64 15.96

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

Dividends

Whitestone REIT pays an annual dividend of $1.14 per share and has a dividend yield of 8.9%. Vornado Realty Trust pays an annual dividend of $2.40 per share and has a dividend yield of 3.2%. Whitestone REIT pays out 877.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Vornado Realty Trust pays out 51.7% of its earnings in the form of a dividend.

Summary

Vornado Realty Trust beats Whitestone REIT on 14 of the 16 factors compared between the two stocks.

About Whitestone REIT

Whitestone REIT is a real estate investment trust. The Company is engaged in owning and operating commercial properties in culturally diverse markets in various metropolitan areas. The Company’s acquisition targets are located in densely populated, culturally diverse neighborhoods, primarily in and around Austin, Chicago, Dallas-Fort Worth, Houston, Phoenix and San Antonio. As of December 31, 2016, the Company owned or held interests in 69 commercial properties, including 15 properties in Houston, five properties in Dallas-Fort Worth, three properties in San Antonio, four properties in Austin, 27 properties in the Scottsdale and Phoenix, Arizona metropolitan areas, and one property in Buffalo Grove, Illinois, a suburb of Chicago. As of December 31, 2016, the Company’s properties included Heritage Trace Plaza, Headquarters Village, La Mirada, The Marketplace at Central, Mercado at Scottsdale Ranch, Paradise Plaza, Parkside Village North, Pima Norte and Quinlan Crossing.

About Vornado Realty Trust

Vornado Realty Trust is a real estate investment trust (REIT). The Company conducts its business through Vornado Realty L.P. (the Operating Partnership). The Company operates through two segments: New York and Washington, DC. As of December 31, 2016, the Company’s New York segment consisted of 28.3 million square feet in 86 properties. Its properties include 1290 Avenue of the Americas, Two Penn Plaza, 770 Broadway and 90 Park Avenue. As of December 31, 2016, the Company’s Washington, DC segment consisted of 58 properties aggregating 14.7 million square feet, including 11.1 million square feet of office space in 44 properties, nine residential properties containing 3,156 units and a hotel property. Its properties include 2001 Jefferson Davis Highway, 223 23rd Street, 2221 South Clark Street and 1700 M Street. The Company’s interests in properties are held by the Operating Partnership. As of December 31, 2016, the Company owned the 3.7 million square foot Mart (theMart) in Chicago.

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