Head-To-Head Contrast: NNN REIT (NYSE:NNN) & Paramount Group (NYSE:PGRE)

NNN REIT (NYSE:NNN) and Paramount Group (NYSE:PGRE) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.

Institutional & Insider Ownership

90.0% of NNN REIT shares are owned by institutional investors. Comparatively, 65.6% of Paramount Group shares are owned by institutional investors. 0.8% of NNN REIT shares are owned by company insiders. Comparatively, 13.8% of Paramount Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares NNN REIT and Paramount Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NNN REIT	$869.27 million	8.94	$396.83 million	$2.14	19.33
Paramount Group	$757.45 million	1.90	-$46.29 million	($0.36)	-18.10

NNN REIT has higher revenue and earnings than Paramount Group. Paramount Group is trading at a lower price-to-earnings ratio than NNN REIT, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings for NNN REIT and Paramount Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NNN REIT	2	10	2	0	2.00
Paramount Group	2	0	2	0	2.00

NNN REIT presently has a consensus price target of $44.3846, suggesting a potential upside of 7.29%. Paramount Group has a consensus price target of $5.4375, suggesting a potential downside of 16.54%. Given NNN REIT’s higher probable upside, equities analysts plainly believe NNN REIT is more favorable than Paramount Group.

Risk & Volatility

NNN REIT has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, Paramount Group has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.

Profitability

This table compares NNN REIT and Paramount Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NNN REIT	43.90%	9.00%	4.37%
Paramount Group	-10.49%	-1.92%	-0.99%

Summary

NNN REIT beats Paramount Group on 10 of the 12 factors compared between the two stocks.

About NNN REIT

NNN REIT invests primarily in high-quality retail properties subject generally to long-term, net leases. As of December 31, 2023, the company owned 3,532 properties in 49 states with a gross leasable area of approximately 36.0 million square feet and a weighted average remaining lease term of 10.1 years. NNN is one of only three publicly traded REITs to have increased annual dividends for 34 or more consecutive years.

About Paramount Group

Paramount Group, Inc. (“Paramount” or the “Company”) is a fully-integrated real estate investment trust that owns, operates, manages, acquires and redevelops high-quality, Class A office properties located in select central business district submarkets of New York and San Francisco. Paramount is focused on maximizing the value of its portfolio by leveraging the sought-after locations of its assets and its proven property management capabilities to attract and retain high-quality tenants.