Critical Analysis: Veris Residential (NYSE:VRE) vs. Power REIT (NYSE:PW)

Veris Residential (NYSE:VREGet Rating) and Power REIT (NYSE:PWGet Rating) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Veris Residential and Power REIT, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Veris Residential 0 1 0 0 2.00
Power REIT 0 0 0 0 N/A

Veris Residential currently has a consensus target price of $18.00, suggesting a potential upside of 14.00%. Given Veris Residential’s higher possible upside, research analysts plainly believe Veris Residential is more favorable than Power REIT.

Earnings & Valuation

This table compares Veris Residential and Power REIT’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Veris Residential $329.32 million 4.36 -$119.04 million ($1.59) -9.93
Power REIT $8.46 million 8.85 $5.14 million $1.29 17.23

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

Profitability

This table compares Veris Residential and Power REIT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Veris Residential -38.53% -9.63% -3.15%
Power REIT 58.63% 9.88% 5.65%

Volatility & Risk

Veris Residential has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Power REIT has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.

Institutional and Insider Ownership

90.5% of Veris Residential shares are held by institutional investors. Comparatively, 45.1% of Power REIT shares are held by institutional investors. 5.7% of Veris Residential shares are held by insiders. Comparatively, 30.3% of Power REIT shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Power REIT beats Veris Residential on 8 of the 12 factors compared between the two stocks.

Veris Residential Company Profile (Get Rating)

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 principles, a best-in-class and sustainable approach to operations, and an inclusive culture based on equality and meritocratic empowerment. For additional information on Veris Residential, Inc. and our properties available for lease, please visit http://www.verisresidential.com/.

Power REIT Company Profile (Get Rating)

Power REIT is a real estate investment trust (REIT) that owns real estate related to infrastructure assets including properties for Controlled Environment Agriculture, Renewable Energy and Transportation. Power REIT is actively seeking to expand its real estate portfolio related to Controlled Environment Agriculture.

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