Head-To-Head Review: SL Green Realty (NYSE:SLG) vs. Veris Residential (NYSE:VRE)

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

Dividends

SL Green Realty pays an annual dividend of $3.09 per share and has a dividend yield of 4.7%. Veris Residential pays an annual dividend of $0.32 per share and has a dividend yield of 2.0%. SL Green Realty pays out -123.6% of its earnings in the form of a dividend. Veris Residential pays out -188.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SL Green Realty	-16.78%	-3.76%	-1.46%
Veris Residential	-5.70%	-4.97%	-2.02%

Earnings and Valuation

This table compares SL Green Realty and Veris Residential”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SL Green Realty	$852.12 million	5.06	-$557.30 million	($2.50)	-26.17
Veris Residential	$289.57 million	5.14	-$107.26 million	($0.17)	-94.24

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for SL Green Realty and Veris Residential, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SL Green Realty	1	13	2	0	2.06
Veris Residential	0	2	2	0	2.50

SL Green Realty currently has a consensus target price of $68.38, indicating a potential upside of 4.50%. Veris Residential has a consensus target price of $18.25, indicating a potential upside of 13.92%. Given Veris Residential’s stronger consensus rating and higher possible upside, analysts plainly believe Veris Residential is more favorable than SL Green Realty.

Institutional & Insider Ownership

90.0% of SL Green Realty shares are owned by institutional investors. Comparatively, 93.0% of Veris Residential shares are owned by institutional investors. 5.1% of SL Green Realty shares are owned by insiders. Comparatively, 16.0% of Veris Residential shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

SL Green Realty has a beta of 1.82, indicating that its stock price is 82% more volatile than the S&P 500. Comparatively, Veris Residential has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500.

Summary

Veris Residential beats SL Green Realty on 9 of the 15 factors compared between the two stocks.

About SL Green Realty

3SL Green Realty Corp., Manhattan’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 June 30, 2022, SL Green held interests in 64 buildings totaling 34.4 million square feet. This included ownership interests in 26.3 million square feet of Manhattan buildings and 7.2 million square feet securing debt and preferred equity investments.

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.