New York REIT (NYRT) & Columbia Property Trust (CXP) Critical Analysis
New York REIT (NYSE: NYRT) and Columbia Property Trust (NYSE:CXP) are both financials companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitability.
Risk and Volatility
New York REIT has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, Columbia Property Trust has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.
This table compares New York REIT and Columbia Property Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|New York REIT||N/A||-1.95%||-0.86%|
|Columbia Property Trust||63.37%||8.10%||4.91%|
Earnings & Valuation
This table compares New York REIT and Columbia Property Trust’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|New York REIT||$160.27 million||4.39||-$82.52 million||N/A||N/A|
|Columbia Property Trust||$473.54 million||5.50||$84.28 million||$1.68||12.94|
Columbia Property Trust has higher revenue and earnings than New York REIT.
Insider and Institutional Ownership
70.0% of New York REIT shares are owned by institutional investors. Comparatively, 67.4% of Columbia Property Trust shares are owned by institutional investors. 0.1% of New York REIT shares are owned by insiders. Comparatively, 0.5% of Columbia Property Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Columbia Property Trust pays an annual dividend of $0.80 per share and has a dividend yield of 3.7%. New York REIT does not pay a dividend. Columbia Property Trust pays out 47.6% of its earnings in the form of a dividend. New York REIT has increased its dividend for 3 consecutive years.
This is a breakdown of current recommendations for New York REIT and Columbia Property Trust, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|New York REIT||0||1||1||0||2.50|
|Columbia Property Trust||0||2||5||0||2.71|
New York REIT currently has a consensus price target of $8.38, suggesting a potential upside of 99.88%. Columbia Property Trust has a consensus price target of $24.17, suggesting a potential upside of 11.16%. Given New York REIT’s higher probable upside, analysts clearly believe New York REIT is more favorable than Columbia Property Trust.
Columbia Property Trust beats New York REIT on 12 of the 16 factors compared between the two stocks.
About New York REIT
New York REIT, Inc. is a real estate investment trust. The Company owns a portfolio of commercial real estate. The Company’s business is primarily conducted through New York Recovery Operating Partnership, L.P. As of December 31, 2016, the Company owned 19 properties, which aggregated 3.3 million rentable square feet. The Company holds interests in properties of various types, such as office, retail, hotel, parking and storage. The Company’s properties include Design Center, 416 Washington Street, 50 Varick Street, 1440 Broadway, One Worldwide Plaza, 256 West 38th Street, 229 West 36th Street, 333 West 34th Street, 367-387 Bleecker Street, 33 West 56th Street (garage) and 350 West 42nd Street.
About Columbia Property Trust
Columbia Property Trust, Inc. operates as a real estate investment trust (REIT), which owns and operates commercial real estate properties. The Company’s primary objective is to generate long-term shareholder returns from a combination of steadily growing cash flows and appreciation in its net asset values, through the acquisition and ownership of office buildings located principally in high-barrier-to-entry markets. The Company’s segments include New York, San Francisco, Atlanta, Washington, D.C., Boston, Los Angeles and all other office markets. The all other office markets segment consists of properties in similar, low-barrier to entry geographic locations, in which the Company does not plan to make further investments. The Company conducts its business primarily through Columbia Property Trust Operating Partnership, L.P. (Columbia Property Trust OP), which acquires, develops, owns, leases and operates real properties directly through subsidiaries or through joint ventures.
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