Net Lease Office Properties (NYSE:NLOP) vs. Vornado Realty Trust (NYSE:VNO) Head to Head Contrast

Net Lease Office Properties (NYSE:NLOPGet Free Report) and Vornado Realty Trust (NYSE:VNOGet Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Institutional & Insider Ownership

58.3% of Net Lease Office Properties shares are owned by institutional investors. Comparatively, 90.0% of Vornado Realty Trust shares are owned by institutional investors. 0.7% of Net Lease Office Properties shares are owned by insiders. Comparatively, 8.4% of Vornado Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Net Lease Office Properties has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, Vornado Realty Trust has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500.

Earnings and Valuation

This table compares Net Lease Office Properties and Vornado Realty Trust”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Net Lease Office Properties $142.25 million 3.04 -$91.47 million ($10.62) -2.75
Vornado Realty Trust $1.79 billion 4.32 $70.39 million $4.04 9.96

Vornado Realty Trust has higher revenue and earnings than Net Lease Office Properties. Net Lease Office Properties is trading at a lower price-to-earnings ratio than Vornado Realty Trust, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Net Lease Office Properties and Vornado Realty Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Net Lease Office Properties 0 0 1 0 3.00
Vornado Realty Trust 2 7 2 0 2.00

Net Lease Office Properties presently has a consensus target price of $46.00, suggesting a potential upside of 57.35%. Vornado Realty Trust has a consensus target price of $38.64, suggesting a potential downside of 3.97%. Given Net Lease Office Properties’ stronger consensus rating and higher possible upside, analysts plainly believe Net Lease Office Properties is more favorable than Vornado Realty Trust.

Profitability

This table compares Net Lease Office Properties and Vornado Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Net Lease Office Properties -133.62% -27.30% -19.78%
Vornado Realty Trust 48.49% 19.64% 5.53%

Summary

Vornado Realty Trust beats Net Lease Office Properties on 12 of the 14 factors compared between the two stocks.

About Net Lease Office Properties

(Get Free Report)

Net Lease Office Properties (NYSE: NLOP) is a publicly traded real estate investment trust with a portfolio of 59 high-quality office properties, totaling approximately 8.7 million leasable square feet primarily leased to corporate tenants on a single-tenant net lease basis. The vast majority of the office properties owned by NLOP are located in the U.S., with the balance in Europe. The portfolio consists of 62 corporate tenants operating in a variety of industries, generating annualized based rent (ABR) of approximately $145 million. NLOP's business plan is to focus on realizing value for its shareholders primarily through strategic asset management and disposition of its property portfolio over time. Given WPC's extensive knowledge of the portfolio, NLOP is externally managed and advised by wholly owned affiliates of WPC to successfully execute on its business strategy. Over the course of its 50-year history, WPC has developed significant expertise in the single-tenant office real estate sector, including the operation, leasing, acquisition and development of assets through many market cycles, and has a proven track record of execution.

About Vornado Realty Trust

(Get Free Report)

Vornado Realty Trust is a fully – integrated equity real estate investment trust.

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