Reviewing SL Green Realty (SLG) and Its Rivals

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

Profitability

This table compares SL Green Realty and its rivals’ 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%

Analyst Recommendations

This is a summary of current ratings and recommmendations for SL Green Realty and its rivals, as reported by MarketBeat.

	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	2830	2689	25	2.28

SL Green Realty presently has a consensus target price of $54.35, indicating a potential upside of 7.66%. As a group, “Office REITs” companies have a potential upside of 4.53%. Given SL Green Realty’s higher possible upside, research analysts plainly believe SL Green Realty is more favorable than its rivals.

Earnings & Valuation

This table compares SL Green Realty and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
SL Green Realty	$1.00 billion	-$88.28 million	-24.51
SL Green Realty Competitors	$530.91 million	-$49.56 million	64.56

SL Green Realty has higher revenue, but lower earnings than its rivals. SL Green Realty is trading at a lower price-to-earnings ratio than its rivals, 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 -395.1% 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 rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Volatility and Risk

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

Institutional and Insider Ownership

90.0% of SL Green Realty shares are held by institutional investors. Comparatively, 61.3% of shares of all “Office REITs” companies are held by institutional investors. 5.9% of SL Green Realty shares are held by insiders. Comparatively, 8.9% of shares of all “Office REITs” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

SL Green Realty rivals 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.