Analyzing Veris Residential (NYSE:VRE) and SITE Centers (NYSE:SITC)

Veris Residential (NYSE:VRE) and SITE Centers (NYSE:SITC) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Insider and Institutional Ownership

93.0% of Veris Residential shares are held by institutional investors. Comparatively, 88.7% of SITE Centers shares are held by institutional investors. 16.4% of Veris Residential shares are held by insiders. Comparatively, 0.2% of SITE Centers shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Veris Residential and SITE Centers”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veris Residential	$271.49 million	5.24	-$107.26 million	($0.32)	-47.66
SITE Centers	$226.04 million	2.75	$265.70 million	$10.32	1.15

SITE Centers has lower revenue, but higher earnings than Veris Residential. Veris Residential is trading at a lower price-to-earnings ratio than SITE Centers, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Veris Residential has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, SITE Centers has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Veris Residential and SITE Centers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veris Residential	0	3	1	0	2.25
SITE Centers	0	7	2	0	2.22

Veris Residential presently has a consensus price target of $18.50, suggesting a potential upside of 21.31%. SITE Centers has a consensus price target of $35.25, suggesting a potential upside of 196.97%. Given SITE Centers’ higher possible upside, analysts clearly believe SITE Centers is more favorable than Veris Residential.

Profitability

This table compares Veris Residential and SITE Centers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Veris Residential	-5.70%	-4.97%	-2.02%
SITE Centers	164.10%	34.20%	19.41%

Dividends

Veris Residential pays an annual dividend of $0.32 per share and has a dividend yield of 2.1%. SITE Centers pays an annual dividend of $0.52 per share and has a dividend yield of 4.4%. Veris Residential pays out -100.0% of its earnings in the form of a dividend. SITE Centers pays out 5.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Veris Residential has raised its dividend for 1 consecutive years.

Summary

SITE Centers beats Veris Residential on 10 of the 17 factors compared between the two stocks.

About Veris Residential

Veris Residential, Inc. is a forward-thinking, environmentally and socially conscious real estate investment trust (REIT) that primarily owns, operates, acquires and develops holistically-inspired, Class A multifamily properties that meet the sustainability-conscious lifestyle needs of today’s residents while seeking to positively impact the communities it serves and the planet at large. The company is guided by an experienced management team and Board of Directors and is underpinned by leading corporate governance principle; a best-in-class and sustainable approach to operations; and an inclusive culture based on equality and meritocratic empowerment.

About SITE Centers

SITE Centers is an owner and manager of open-air shopping centers located in suburban, high household income communities. The Company is a self-administered and self-managed REIT operating as a fully integrated real estate company, and is publicly traded on the New York Stock Exchange under the ticker symbol SITC.