Weingarten Realty Investors (NYSE: WRI) and CoreSite Realty (NYSE:COR) are both mid-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Volatility and Risk

Weingarten Realty Investors has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, CoreSite Realty has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500.

Institutional and Insider Ownership

79.1% of Weingarten Realty Investors shares are held by institutional investors. Comparatively, 97.7% of CoreSite Realty shares are held by institutional investors. 7.3% of Weingarten Realty Investors shares are held by insiders. Comparatively, 1.5% of CoreSite Realty shares 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.

Analyst Ratings

This is a summary of recent recommendations for Weingarten Realty Investors and CoreSite Realty, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weingarten Realty Investors 0 3 1 0 2.25
CoreSite Realty 0 6 6 0 2.50

Weingarten Realty Investors presently has a consensus target price of $33.50, suggesting a potential upside of 2.60%. CoreSite Realty has a consensus target price of $108.30, suggesting a potential downside of 4.23%. Given Weingarten Realty Investors’ higher probable upside, equities research analysts clearly believe Weingarten Realty Investors is more favorable than CoreSite Realty.

Profitability

This table compares Weingarten Realty Investors and CoreSite Realty’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Weingarten Realty Investors 36.86% 12.07% 4.85%
CoreSite Realty 15.21% 15.35% 4.82%

Dividends

Weingarten Realty Investors pays an annual dividend of $1.54 per share and has a dividend yield of 4.7%. CoreSite Realty pays an annual dividend of $3.60 per share and has a dividend yield of 3.2%. Weingarten Realty Investors pays out 94.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CoreSite Realty pays out 195.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Weingarten Realty Investors has increased its dividend for 6 consecutive years and CoreSite Realty has increased its dividend for 7 consecutive years. Weingarten Realty Investors is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Weingarten Realty Investors and CoreSite Realty’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Weingarten Realty Investors $549.55 million 7.63 $238.93 million $1.63 20.03
CoreSite Realty $400.35 million 9.67 $58.70 million $1.84 61.46

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

Summary

Weingarten Realty Investors beats CoreSite Realty on 9 of the 17 factors compared between the two stocks.

About Weingarten Realty Investors

Weingarten Realty Investors is a real estate investment trust (REIT). The Company’s primary business is leasing space to tenants in the shopping centers it owns or leases. The Company also provides property management services. The Company is in the business of owning, managing and developing retail shopping centers. As of December 31, 2016, the Company had owned or operated under long-term leases, either directly or through its interest in real estate joint ventures or partnerships, a total of 220 centers, primarily neighborhood and community shopping centers, which were located in 18 states spanning the country from coast to coast with approximately 44.7 million square feet of gross leasable area. Its centers are located principally in the South, West Coast and Southeast Coast of the United States with concentrations in Arizona, California, Florida and Texas. It also owned interests in 28 parcels of land that totaled approximately 19.8 million square feet, as of December 31, 2016.

About CoreSite Realty

CoreSite Realty Corporation (CoreSite) is an integrated, self-administered and self-managed real estate investment trust. The Company, through its controlling interest in CoreSite, L.P., is engaged in the business of ownership, acquisition, construction and operation of data centers across a range of markets in the United States, including the Northern Virginia, New York and San Francisco Bay areas, Chicago, Los Angeles, Boston, Miami and Denver. The enterprises, network operators, cloud providers and supporting service providers choose CoreSite to connect and protect their data, applications and computing workloads. Its offerings include the CoreSite Open Cloud Exchange and the Any2 Internet Exchange. As of December 31, 2016, it had offered cloud-enabled, network data center campuses with over 20,000 interconnections across its portfolio and direct access to carriers and Internet service providers, cloud and information technology service providers, and inter site connectivity.

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