NorthStar Realty Europe Corp. (NRE) and Corporate Office Properties Trust (OFC) Head-To-Head Review
NorthStar Realty Europe Corp. (NYSE: NRE) and Corporate Office Properties Trust (NYSE:OFC) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, dividends, valuation and risk.
Risk & Volatility
NorthStar Realty Europe Corp. has a beta of 2.5, indicating that its share price is 150% more volatile than the S&P 500. Comparatively, Corporate Office Properties Trust has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.
Earnings and Valuation
This table compares NorthStar Realty Europe Corp. and Corporate Office Properties Trust’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|NorthStar Realty Europe Corp.||$131.25 million||5.33||$37.01 million||($0.45)||-28.11|
|Corporate Office Properties Trust||$578.09 million||5.60||$290.41 million||$0.73||44.74|
Corporate Office Properties Trust has higher revenue and earnings than NorthStar Realty Europe Corp.. NorthStar Realty Europe Corp. is trading at a lower price-to-earnings ratio than Corporate Office Properties Trust, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and recommmendations for NorthStar Realty Europe Corp. and Corporate Office Properties Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|NorthStar Realty Europe Corp.||0||0||0||0||N/A|
|Corporate Office Properties Trust||2||7||0||0||1.78|
Corporate Office Properties Trust has a consensus target price of $33.33, suggesting a potential upside of 2.06%. Given Corporate Office Properties Trust’s higher possible upside, analysts clearly believe Corporate Office Properties Trust is more favorable than NorthStar Realty Europe Corp..
This table compares NorthStar Realty Europe Corp. and Corporate Office Properties Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|NorthStar Realty Europe Corp.||-18.57%||7.73%||2.46%|
|Corporate Office Properties Trust||15.86%||6.55%||2.48%|
Institutional and Insider Ownership
69.9% of NorthStar Realty Europe Corp. shares are owned by institutional investors. 2.2% of NorthStar Realty Europe Corp. shares are owned by company insiders. Comparatively, 0.6% of Corporate Office Properties Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
NorthStar Realty Europe Corp. pays an annual dividend of $0.60 per share and has a dividend yield of 4.7%. Corporate Office Properties Trust pays an annual dividend of $1.10 per share and has a dividend yield of 3.4%. NorthStar Realty Europe Corp. pays out -133.3% of its earnings in the form of a dividend. Corporate Office Properties Trust pays out 150.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NorthStar Realty Europe Corp. is clearly the better dividend stock, given its higher yield and lower payout ratio.
Corporate Office Properties Trust beats NorthStar Realty Europe Corp. on 7 of the 13 factors compared between the two stocks.
About NorthStar Realty Europe Corp.
NorthStar Realty Europe Corp. is a real estate investment trust (REIT). The Company is a European focused commercial real estate company with primary office properties in cities within Germany, the United Kingdom and France. Its objective is to provide its stockholders with stable and recurring cash flow supplemented by capital growth over time. The Company conducts its business through two segments: Real Estate and Corporate. Its European commercial real estate business is primarily focused on office properties. Its portfolio consists of approximately 48 properties and a total of approximately 495,588 square meters of rentable space, located in various European markets, including Frankfurt, Hamburg, Berlin, London, Paris, Amsterdam, Milan, Brussels and Madrid. Its overall portfolio is over 87% occupied. In addition, it owns over two hotels, which are leased to third-party operators. It is externally managed and advised by an affiliate of NorthStar Asset Management Group Inc. (NSAM).
About Corporate Office Properties Trust
Corporate Office Properties Trust is a fully-integrated and self-managed real estate investment trust (REIT). The Company owns, manages, leases, develops and acquires office and data center properties. The Company’s segments are Defense/IT Locations; Regional Office; operating wholesale data center, and other. As of December 31, 2016, the Company’s properties included 164 operating office properties totaling 17.2 million square feet, including 13 triple-net leased, single-tenant data center properties; 11 office properties under construction or redevelopment; 1,028 acres of land controlled for future development, and a wholesale data center with a critical load of 19.25 megawatts. The Company conducts all of its operations through Corporate Office Properties, L.P. (COPLP) and subsidiaries (collectively, the Operating Partnership). COPLP owns real estate both directly and through subsidiary partnerships and limited liability companies (LLCs).
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