Financial Review: Empire State Realty Trust (ESRT) & Excel Trust (EXL)

Empire State Realty Trust (NYSE: ESRT) and Excel Trust (NYSE:EXL) are both financials companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, profitability, valuation and risk.

Institutional & Insider Ownership

81.6% of Empire State Realty Trust shares are held by institutional investors. 11.8% of Empire State Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Empire State Realty Trust has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, Excel Trust has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

Dividends

Empire State Realty Trust pays an annual dividend of $0.42 per share and has a dividend yield of 2.0%. Excel Trust does not pay a dividend. Empire State Realty Trust pays out 107.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Excel Trust has increased its dividend for 7 consecutive years.

Profitability

This table compares Empire State Realty Trust and Excel Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Empire State Realty Trust 18.95% 6.54% 3.71%
Excel Trust 9.45% 0.65% 0.88%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Empire State Realty Trust and Excel Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Empire State Realty Trust 0 3 1 0 2.25
Excel Trust 0 0 0 0 N/A

Empire State Realty Trust currently has a consensus price target of $21.75, suggesting a potential upside of 5.84%. Given Empire State Realty Trust’s higher probable upside, equities analysts plainly believe Empire State Realty Trust is more favorable than Excel Trust.

Earnings & Valuation

This table compares Empire State Realty Trust and Excel Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Empire State Realty Trust $678.00 million 4.81 $52.39 million $0.39 52.69
Excel Trust N/A N/A N/A $0.26 60.92

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

Summary

Empire State Realty Trust beats Excel Trust on 11 of the 13 factors compared between the two stocks.

About Empire State Realty Trust

Empire State Realty Trust, Inc. is a real estate investment trust. The Company owns, manages, operates, acquires and repositions office and retail properties in Manhattan and the greater New York metropolitan area, including the Empire State Building. The Company operates through two segments: Real Estate and Observatory. The Real Estate segment includes all activities related to the ownership, management, operation, acquisition, repositioning and disposition of its real estate assets. The Observatory segment operates the 86th and 102nd floor observatories at the Empire State Building. As of December 31, 2016, its portfolio consisted of 14 office properties and six standalone retail properties totaling approximately 10.1 million rentable square feet. The Company’s properties include One Grand Central Place, 1400 Broadway, 111 West 33rd Street, 250 West 57th Street, 1359 Broadway and 1333 Broadway.

About Excel Trust

Excel Trust, Inc. is a real estate investment trust (REIT). The Company is a vertically integrated, self-administered, self-managed real estate firm with the principal objective of acquiring, financing, developing, leasing, owning and managing community and power centers, grocery anchored neighborhood centers and freestanding retail properties. It operates through three segments: retail properties, multi-family properties and office properties. It owns approximately 38 consolidated retail operating properties with a total of approximately 7.2 million square feet of gross leasable area (GLA). The multi-family segment consists of apartment units at one retail property, West Broad Village, which is located in Richmond, Virginia. The office segment consists of two properties, Excel Centre, a portion of which is utilized as its headquarters, and the Promenade Corporate Center. These office properties total approximately 338,339 square feet of GLA.

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