Head-To-Head Comparison: SL Green Realty Corporation (SLG) versus Its Competitors
SL Green Realty Corporation (NYSE: SLG) is one of 20 publicly-traded companies in the “Office REITs” industry, but how does it contrast to its peers? We will compare SL Green Realty Corporation to similar businesses based on the strength of its analyst recommendations, valuation, earnings, institutional ownership, dividends, profitability and risk.
This table compares SL Green Realty Corporation and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SL Green Realty Corporation||7.20%||1.43%||0.72%|
|SL Green Realty Corporation Competitors||5.41%||1.37%||0.69%|
Risk & Volatility
SL Green Realty Corporation has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, SL Green Realty Corporation’s peers have a beta of 0.91, indicating that their average stock price is 9% less volatile than the S&P 500.
This is a summary of current ratings and recommmendations for SL Green Realty Corporation and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SL Green Realty Corporation||0||7||5||0||2.42|
|SL Green Realty Corporation Competitors||173||634||610||10||2.32|
SL Green Realty Corporation presently has a consensus target price of $115.64, suggesting a potential upside of 17.47%. As a group, “Office REITs” companies have a potential upside of 7.85%. Given SL Green Realty Corporation’s stronger consensus rating and higher possible upside, equities analysts clearly believe SL Green Realty Corporation is more favorable than its peers.
SL Green Realty Corporation pays an annual dividend of $3.10 per share and has a dividend yield of 3.1%. SL Green Realty Corporation pays out 319.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Office REITs” companies pay a dividend yield of 3.4% and pay out 249.2% of their earnings in the form of a dividend. SL Green Realty Corporation has raised its dividend for 5 consecutive years. SL Green Realty Corporation lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.
Institutional and Insider Ownership
85.6% of shares of all “Office REITs” companies are held by institutional investors. 3.0% of SL Green Realty Corporation shares are held by company insiders. Comparatively, 2.8% of shares of all “Office REITs” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares SL Green Realty Corporation and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|SL Green Realty Corporation||$1.53 billion||$871.44 million||101.48|
|SL Green Realty Corporation Competitors||$648.15 million||$343.67 million||59.45|
SL Green Realty Corporation has higher revenue and earnings than its peers. SL Green Realty Corporation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
SL Green Realty Corporation beats its peers on 9 of the 15 factors compared.
About SL Green Realty Corporation
SL Green Realty Corp. is a self-managed real estate investment trust (REIT), with in-house capabilities in property management, acquisitions and dispositions, financing, development and redevelopment, construction and leasing. The Company operates through two segments: real estate, and debt and preferred equity investments. It acquires, owns, repositions, manages and leases commercial office, retail and multifamily properties in the New York Metropolitan area. Its debt and preferred equity activities include purchases and originations, inclusive of advances under future funding obligations, discount and fee amortization, and paid-in-kind interest. As of December 31, 2016, the Company owned or held interests in 24 consolidated commercial office buildings encompassing approximately 16.1 million rentable square feet and seven unconsolidated commercial office buildings encompassing approximately 6.6 million rentable square feet located primarily in midtown Manhattan.
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