Financial Contrast: Equity One (NYSE:EQY) & Vornado Realty Trust (VNO)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Equity One 18.64% 3.82% 2.05%
Vornado Realty Trust 37.96% 4.51% 1.39%

Dividends

Equity One pays an annual dividend of $0.88 per share and has a dividend yield of 2.9%. Vornado Realty Trust pays an annual dividend of $2.40 per share and has a dividend yield of 3.2%. Equity One pays out 179.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Vornado Realty Trust pays out 51.7% of its earnings in the form of a dividend. Vornado Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

64.0% of Equity One shares are held by institutional investors. Comparatively, 87.2% of Vornado Realty Trust shares are held by institutional investors. 35.9% of Equity One shares are held by company insiders. Comparatively, 9.7% of Vornado Realty Trust shares are held by company 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 Recommendations

This is a summary of recent ratings and target prices for Equity One and Vornado Realty Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Equity One 1 2 0 0 1.67
Vornado Realty Trust 0 4 4 0 2.50

Vornado Realty Trust has a consensus price target of $99.14, indicating a potential upside of 34.14%. Given Vornado Realty Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Vornado Realty Trust is more favorable than Equity One.

Risk and Volatility

Equity One has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, Vornado Realty Trust has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Earnings and Valuation

This table compares Equity One and Vornado Realty Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Equity One N/A N/A N/A $0.49 62.96
Vornado Realty Trust $2.70 billion 5.19 $1.40 billion $4.64 15.93

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

Summary

Vornado Realty Trust beats Equity One on 11 of the 13 factors compared between the two stocks.

About Equity One

Equity One, Inc. is a real estate investment trust (REIT). The Company owns, manages, acquires, develops and redevelops shopping centers and retail properties located in supply constrained suburban and urban communities. As of December 31, 2016, the Company’s portfolio consisted of 122 properties, including 101 retail properties and five non-retail properties totaling approximately 12.8 million square feet of gross leasable area (GLA), 10 development or redevelopment properties with approximately 2.3 million square feet of GLA, and six land parcels. Its retail occupancy excluding developments and redevelopments was 95.8% and included national, regional and local tenants as of December 31, 2016. In addition, the Company had joint venture interests in six retail properties and two office buildings totaling approximately 1.4 million square feet of GLA as of December 31, 2016.

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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