Franklin BSP Realty Trust (NYSE:FBRT) versus Veris Residential (NYSE:VRE) Critical Comparison

Veris Residential (NYSE:VREGet Free Report) and Franklin BSP Realty Trust (NYSE:FBRTGet Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, profitability, risk, analyst recommendations, dividends and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations for Veris Residential and Franklin BSP Realty Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Veris Residential 1 1 1 0 2.00
Franklin BSP Realty Trust 0 0 3 1 3.25

Veris Residential currently has a consensus price target of $14.33, indicating a potential downside of 3.09%. Franklin BSP Realty Trust has a consensus price target of $14.75, indicating a potential upside of 17.91%. Given Franklin BSP Realty Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Franklin BSP Realty Trust is more favorable than Veris Residential.

Earnings & Valuation

This table compares Veris Residential and Franklin BSP Realty Trust’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Veris Residential $279.86 million 4.89 -$107.26 million ($1.00) -14.79
Franklin BSP Realty Trust $263.95 million 3.88 $145.21 million $1.32 9.48

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

Profitability

This table compares Veris Residential and Franklin BSP Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Veris Residential -32.51% -10.42% -3.99%
Franklin BSP Realty Trust 53.82% 14.32% 3.20%

Volatility and Risk

Veris Residential has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, Franklin BSP Realty Trust has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500.

Institutional and Insider Ownership

93.0% of Veris Residential shares are owned by institutional investors. Comparatively, 59.9% of Franklin BSP Realty Trust shares are owned by institutional investors. 15.0% of Veris Residential shares are owned by insiders. Comparatively, 0.7% of Franklin BSP Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Veris Residential pays an annual dividend of $0.24 per share and has a dividend yield of 1.6%. Franklin BSP Realty Trust pays an annual dividend of $1.42 per share and has a dividend yield of 11.4%. Veris Residential pays out -24.0% of its earnings in the form of a dividend. Franklin BSP Realty Trust pays out 107.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Franklin BSP Realty Trust beats Veris Residential on 11 of the 16 factors compared between the two stocks.

About Veris Residential

(Get Free Report)

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 principle; a best-in-class and sustainable approach to operations; and an inclusive culture based on equality and meritocratic empowerment.

About Franklin BSP Realty Trust

(Get Free Report)

Benefit Street Partners operates as a self-managed real estate investment trust (REIT). BSP earns income from investing in a leveraged portfolio of residential mortgage pass-through securities consisting almost exclusively of adjustable-rate mortgage (ARM) securities issued and guaranteed by government-sponsored enterprises, either Federal National Mortgage Association (Fannie Mae) or Federal Home Loan Mortgage Corporation (Freddie Mac) (together, the government-sponsored enterprises (GSEs)), or by an agency of the federal government, Government National Mortgage Association (Ginnie Mae). BSP’s investment strategy focuses on managing a portfolio of residential mortgage investments consisting almost exclusively of ARM Agency Securities. As of December 31, 2012, the Company’s securities consisted of Agency Securities classified as available-for-sale and Residential mortgage securities classified as held-to-maturity.

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