CoreSite Realty Corporation (NYSE: COR) and American Assets Trust (NYSE:AAT) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, risk, earnings, valuation and analyst recommendations.

Profitability

This table compares CoreSite Realty Corporation and American Assets Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CoreSite Realty Corporation 15.15% 14.14% 4.69%
American Assets Trust 10.93% 3.94% 1.61%

Insider & Institutional Ownership

98.5% of CoreSite Realty Corporation shares are held by institutional investors. Comparatively, 97.8% of American Assets Trust shares are held by institutional investors. 1.5% of CoreSite Realty Corporation shares are held by company insiders. Comparatively, 34.2% of American Assets Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

CoreSite Realty Corporation pays an annual dividend of $3.60 per share and has a dividend yield of 3.1%. American Assets Trust pays an annual dividend of $1.04 per share and has a dividend yield of 2.6%. CoreSite Realty Corporation pays out 206.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Assets Trust pays out 157.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CoreSite Realty Corporation has increased its dividend for 6 consecutive years. CoreSite Realty Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent recommendations for CoreSite Realty Corporation and American Assets Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CoreSite Realty Corporation 0 7 4 0 2.36
American Assets Trust 0 1 1 0 2.50

CoreSite Realty Corporation presently has a consensus price target of $95.11, indicating a potential downside of 18.35%. American Assets Trust has a consensus price target of $47.00, indicating a potential upside of 16.48%. Given American Assets Trust’s stronger consensus rating and higher probable upside, analysts plainly believe American Assets Trust is more favorable than CoreSite Realty Corporation.

Earnings and Valuation

This table compares CoreSite Realty Corporation and American Assets Trust’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CoreSite Realty Corporation $444.59 million 8.97 $232.47 million $1.74 66.94
American Assets Trust $298.95 million 6.36 $168.82 million $0.66 61.14

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

Volatility and Risk

CoreSite Realty Corporation has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, American Assets Trust has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500.

Summary

CoreSite Realty Corporation beats American Assets Trust on 13 of the 17 factors compared between the two stocks.

About CoreSite Realty Corporation

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.

About American Assets Trust

American Assets Trust, Inc. is a full service, vertically integrated and self-administered real estate investment trust (REIT). The Company owns, operates, acquires and develops retail, office, multifamily and mixed-use properties in Southern California, Northern California, Oregon, Washington, Texas and Hawaii markets. The Company operates in four business segments: retail, office, multifamily and mixed-use. As of December 31, 2016, the Company’s portfolio consisted of 11 retail shopping centers; seven office properties; a mixed-use property consisting of a 369-room all-suite hotel and a retail shopping center, and five multifamily properties. Additionally, as of December 31, 2016, the Company owned land at four of its properties that it classified as held for development and construction in progress. The Company’s markets include San Diego, the San Francisco Bay Area, Portland, Oregon, Bellevue, Washington and Oahu, Hawaii.

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