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Head to Head Comparison: Veris Residential (NYSE:VRE) & Ready Capital (NYSE:RC)

Financial News Live ·  Jan 19, 2023 23:12

Veris Residential (NYSE:VRE – Get Rating) and Ready Capital (NYSE:RC – Get Rating) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Earnings and Valuation

This table compares Veris Residential and Ready Capital's gross revenue, earnings per share and valuation.

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Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Veris Residential $329.32 million 4.35 -$119.04 million ($1.30) -12.09
Ready Capital $403.50 million 3.39 $157.74 million $2.29 5.40

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

Insider & Institutional Ownership

95.1% of Veris Residential shares are held by institutional investors. Comparatively, 62.8% of Ready Capital shares are held by institutional investors. 7.8% of Veris Residential shares are held by company insiders. Comparatively, 1.6% of Ready Capital shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Veris Residential and Ready Capital's net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Veris Residential -30.74% -7.53% -2.48%
Ready Capital 40.27% 12.46% 1.87%

Risk & Volatility

Veris Residential has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Ready Capital has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Veris Residential and Ready Capital, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Veris Residential 0 3 1 0 2.25
Ready Capital 0 3 3 0 2.50

Veris Residential presently has a consensus price target of $16.00, suggesting a potential upside of 1.78%. Ready Capital has a consensus price target of $14.00, suggesting a potential upside of 13.27%. Given Ready Capital's stronger consensus rating and higher probable upside, analysts plainly believe Ready Capital is more favorable than Veris Residential.

Summary

Ready Capital beats Veris Residential on 11 of the 14 factors compared between the two stocks.

About Veris Residential

(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

About Ready Capital

(Get Rating)

Ready Capital Corporation operates as a real estate finance company in the United States. The company acquires, originates, manages, services, and finances small to medium balance commercial (SBC) loans, small business administration (SBA) loans, residential mortgage loans, and mortgage-backed securities collateralized primarily by SBC loans, or other real estate-related investments. It operates through three segments: SBC Lending and Acquisitions; Small Business Lending; and Residential Mortgage Banking. The SBC Lending and Acquisitions segment originates SBC loans secured by stabilized or transitional investor properties using various loan origination channels. The Small Business Lending segment acquires, originates, and services owner-occupied loans guaranteed by the SBA under its SBA Section 7(a) Program. The Residential Mortgage Banking segment originates residential mortgage loans. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as Sutherland Asset Management Corporation and changed its name to Ready Capital Corporation in September 2018. Ready Capital Corporation was founded in 2007 and is headquartered in New York, New York.

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