Contrasting SL Green Realty (NYSE:SLG) and Blackstone Mortgage Trust (NYSE:BXMT)

SL Green Realty (NYSE:SLG) and Blackstone Mortgage Trust (NYSE:BXMT) are both mid-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Institutional and Insider Ownership

99.4% of SL Green Realty shares are owned by institutional investors. Comparatively, 59.0% of Blackstone Mortgage Trust shares are owned by institutional investors. 4.0% of SL Green Realty shares are owned by insiders. Comparatively, 1.0% of Blackstone Mortgage Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.



Analyst Recommendations

This is a summary of recent ratings and recommmendations for SL Green Realty and Blackstone Mortgage Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SL Green Realty 2 4 7 0 2.38
Blackstone Mortgage Trust 0 4 0 0 2.00

SL Green Realty presently has a consensus target price of $93.75, indicating a potential upside of 15.21%. Blackstone Mortgage Trust has a consensus target price of $33.75, indicating a potential downside of 7.46%. Given SL Green Realty’s stronger consensus rating and higher possible upside, analysts clearly believe SL Green Realty is more favorable than Blackstone Mortgage Trust.

Dividends

SL Green Realty pays an annual dividend of $3.40 per share and has a dividend yield of 4.2%. Blackstone Mortgage Trust pays an annual dividend of $2.48 per share and has a dividend yield of 6.8%. SL Green Realty pays out 51.4% of its earnings in the form of a dividend. Blackstone Mortgage Trust pays out 93.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SL Green Realty has raised its dividend for 7 consecutive years.

Volatility & Risk

SL Green Realty has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, Blackstone Mortgage Trust has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.

Valuation and Earnings

This table compares SL Green Realty and Blackstone Mortgage Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SL Green Realty $1.23 billion 5.46 $258.65 million $6.62 12.29
Blackstone Mortgage Trust $396.48 million 12.35 $285.07 million $2.65 13.76

Blackstone Mortgage Trust has lower revenue, but higher earnings than SL Green Realty. SL Green Realty is trading at a lower price-to-earnings ratio than Blackstone Mortgage Trust, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares SL Green Realty and Blackstone Mortgage Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SL Green Realty 19.88% 3.99% 1.86%
Blackstone Mortgage Trust 46.31% 9.06% 2.24%

Summary

SL Green Realty beats Blackstone Mortgage Trust on 10 of the 17 factors compared between the two stocks.

SL Green Realty Company Profile

SL Green Realty Corp., an S&P 500 company and New York City's largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of March 31, 2019, SL Green held interests in 96 Manhattan buildings totaling 46.4 million square feet. This included ownership interests in 27.7 million square feet of Manhattan buildings and 18.7 million square feet of buildings securing debt and preferred equity investments. In addition, SL Green held ownership interests in 7 suburban properties comprised of 15 suburban buildings totaling 2.3 million square feet in Brooklyn, Westchester County, and Connecticut.

Blackstone Mortgage Trust Company Profile

Blackstone Mortgage Trust, Inc., a real estate finance company, originates senior loans collateralized by properties in North America, Europe, and Australia. The company operates as a real estate investment trust for federal income tax purposes. It generally would not be subject to U.S. federal income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as Capital Trust, Inc. and changed its name to Blackstone Mortgage Trust, Inc. in May 2013. Blackstone Mortgage Trust, Inc. was founded in 1966 and is headquartered in New York, New York.

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