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Orion Office REIT (NYSE:ONL) Versus Vornado Realty Trust (NYSE:VNO) Critical Survey

Defense World ·  Jan 12, 2023 01:42

Orion Office REIT (NYSE:ONL – Get Rating) and Vornado Realty Trust (NYSE:VNO – Get Rating) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, valuation and risk.

Insider & Institutional Ownership

84.3% of Orion Office REIT shares are owned by institutional investors. Comparatively, 76.0% of Vornado Realty Trust shares are owned by institutional investors. 0.1% of Orion Office REIT shares are owned by insiders. Comparatively, 7.9% of Vornado Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

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Risk & Volatility

Orion Office REIT has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, Vornado Realty Trust has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500.

Dividends

Orion Office REIT pays an annual dividend of $0.40 per share and has a dividend yield of 4.7%. Vornado Realty Trust pays an annual dividend of $2.12 per share and has a dividend yield of 9.4%. Orion Office REIT pays out -17.0% of its earnings in the form of a dividend. Vornado Realty Trust pays out 424.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a summary of recent recommendations for Orion Office REIT and Vornado Realty Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Orion Office REIT 0 1 1 0 2.50
Vornado Realty Trust 3 5 1 0 1.78

Orion Office REIT currently has a consensus price target of $13.00, suggesting a potential upside of 51.34%. Vornado Realty Trust has a consensus price target of $24.88, suggesting a potential upside of 10.26%. Given Orion Office REIT's stronger consensus rating and higher probable upside, analysts clearly believe Orion Office REIT is more favorable than Vornado Realty Trust.

Earnings & Valuation

This table compares Orion Office REIT and Vornado Realty Trust's top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Orion Office REIT $79.73 million 6.10 -$47.48 million ($2.35) -3.66
Vornado Realty Trust $1.59 billion 2.72 $176.00 million $0.50 45.12

Vornado Realty Trust has higher revenue and earnings than Orion Office REIT. Orion Office REIT 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.

Profitability

This table compares Orion Office REIT and Vornado Realty Trust's net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Orion Office REIT -67.18% -12.64% -7.79%
Vornado Realty Trust 8.94% 3.01% 0.94%

Summary

Vornado Realty Trust beats Orion Office REIT on 10 of the 15 factors compared between the two stocks.

About Orion Office REIT

(Get Rating)

Orion Office REIT specializes in the ownership, acquisition and management of a diversified portfolio of mission-critical and corporate headquarters office buildings in high-quality suburban markets across the U.S. The portfolio is leased primarily on a single-tenant net lease basis to creditworthy tenants. The company's team of experienced industry leaders employs a proven, cycle-tested investment evaluation framework which serves as the lens through which capital allocation decisions are made for the current portfolio and future acquisitions.

About Vornado Realty Trust

(Get Rating)

Vornado's portfolio is concentrated in the nation's key market New York City along with the premier asset in both Chicago and San Francisco. Vornado is also the real estate industry leader in sustainability policy. The company owns and manages over 23 million square feet of LEED certified buildings and received the Energy Star Partner of the Year Award, Sustained Excellence 2019. In 2012, Vornado commemorated 50 years on the NYSE.

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Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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