Comparing Veris Residential (NYSE:VRE) & Realty Income (NYSE:O)

Veris Residential (NYSE:VRE) and Realty Income (NYSE:O) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Insider & Institutional Ownership

93.0% of Veris Residential shares are held by institutional investors. Comparatively, 70.8% of Realty Income shares are held by institutional investors. 15.0% of Veris Residential shares are held by insiders. Comparatively, 0.1% of Realty Income shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Veris Residential and Realty Income’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Veris Residential	-38.30%	-11.53%	-4.32%
Realty Income	21.39%	4.06%	1.60%

Risk and Volatility

Veris Residential has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, Realty Income has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Veris Residential and Realty Income, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veris Residential	0	1	2	0	2.67
Realty Income	0	7	5	0	2.42

Veris Residential presently has a consensus target price of $17.67, suggesting a potential upside of 18.53%. Realty Income has a consensus target price of $60.96, suggesting a potential upside of 13.37%. Given Veris Residential’s stronger consensus rating and higher probable upside, research analysts plainly believe Veris Residential is more favorable than Realty Income.

Dividends

Veris Residential pays an annual dividend of $0.21 per share and has a dividend yield of 1.4%. Realty Income pays an annual dividend of $3.08 per share and has a dividend yield of 5.7%. Veris Residential pays out -17.1% of its earnings in the form of a dividend. Realty Income pays out 244.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Realty Income has increased its dividend for 31 consecutive years. Realty Income is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Veris Residential and Realty Income’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veris Residential	$279.86 million	4.91	-$107.26 million	($1.23)	-12.12
Realty Income	$4.08 billion	11.35	$872.31 million	$1.26	42.67

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

Summary

Realty Income beats Veris Residential on 11 of the 17 factors compared between the two stocks.

About Veris Residential

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 principle; a best-in-class and sustainable approach to operations; and an inclusive culture based on equality and meritocratic empowerment.

About Realty Income

Realty Income, The Monthly Dividend Company, is an S&P 500 company and member of the S&P 500 Dividend Aristocrats index. We invest in people and places to deliver dependable monthly dividends that increase over time. The company is structured as a real estate investment trust ("REIT"), and its monthly dividends are supported by the cash flow from over 15,450 real estate properties (including properties acquired in the Spirit merger in January 2024) primarily owned under long-term net lease agreements with commercial clients. To date, the company has declared 644 consecutive monthly dividends on its shares of common stock throughout its 55-year operating history and increased the dividend 123 times since Realty Income's public listing in 1994 (NYSE: O).