Head to Head Contrast: Alexandria Real Estate Equities (ARE) & New York REIT (NYRT)

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Alexandria Real Estate Equities (NYSE:ARE) and New York REIT (NYSE:NYRT) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for Alexandria Real Estate Equities and New York REIT, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alexandria Real Estate Equities 0 2 6 0 2.75
New York REIT 0 1 0 0 2.00

Alexandria Real Estate Equities presently has a consensus target price of $105.42, suggesting a potential downside of 12.18%. New York REIT has a consensus target price of $26.00, suggesting a potential upside of 83.23%. Given New York REIT’s higher probable upside, analysts plainly believe New York REIT is more favorable than Alexandria Real Estate Equities.

Profitability

This table compares Alexandria Real Estate Equities and New York REIT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alexandria Real Estate Equities 22.86% 4.36% 2.25%
New York REIT N/A N/A N/A

Dividends

Alexandria Real Estate Equities pays an annual dividend of $3.72 per share and has a dividend yield of 3.1%. New York REIT does not pay a dividend. Alexandria Real Estate Equities pays out 61.8% of its earnings in the form of a dividend. Alexandria Real Estate Equities has increased its dividend for 7 consecutive years and New York REIT has increased its dividend for 3 consecutive years.

Institutional & Insider Ownership

99.0% of Alexandria Real Estate Equities shares are owned by institutional investors. Comparatively, 74.3% of New York REIT shares are owned by institutional investors. 1.4% of Alexandria Real Estate Equities shares are owned by company insiders. Comparatively, 0.1% of New York REIT shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Alexandria Real Estate Equities has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, New York REIT has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.

Earnings and Valuation

This table compares Alexandria Real Estate Equities and New York REIT’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alexandria Real Estate Equities $1.13 billion 11.25 $169.09 million $6.02 19.94
New York REIT $160.27 million 1.49 N/A N/A N/A

Alexandria Real Estate Equities has higher revenue and earnings than New York REIT.

Summary

Alexandria Real Estate Equities beats New York REIT on 12 of the 14 factors compared between the two stocks.

About Alexandria Real Estate Equities

Alexandria Real Estate Equities, Inc. (NYSE:ARE), an S&P 500 company, is an urban office real estate investment trust ("REIT") uniquely focused on collaborative life science and technology campuses in AAA innovation cluster locations, with a total market capitalization of $18.8 billion and an asset base in North America of 32.0 million SF as of June 30, 2018. The asset base in North America includes 21.5 million RSF of operating properties and 3.5 million RSF of development and redevelopment of new Class A properties currently undergoing construction and pre-construction activities with target delivery dates ranging from 2018 through 2020. Additionally, the asset base in North America includes 7.0 million SF of intermediate-term and future development projects. Founded in 1994, Alexandria pioneered this niche and has since established a significant market presence in key locations, including Greater Boston, San Francisco, New York City, San Diego, Seattle, Maryland, and Research Triangle Park. Alexandria has a longstanding and proven track record of developing Class A properties clustered in urban life science and technology campuses that provide its innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science and technology companies through its venture capital arm. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value.

About New York REIT

NYRT is a publicly traded real estate investment trust listed on the NYSE that owns income-producing commercial real estate, including office and retail properties, located in New York City. NYRT's shareholders recently adopted a plan of liquidation pursuant to which NYRT is liquidating and winding down and, in connection therewith, is seeking to sell its assets in an orderly fashion to maximize shareholder value.

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