Critical Survey: Vornado Realty Trust (NYSE:VNO) & Brandywine Realty Trust (NYSE:BDN)

Brandywine Realty Trust (NYSE:BDN) and Vornado Realty Trust (NYSE:VNO) are both real estate companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, dividends, risk, institutional ownership and valuation.

Institutional & Insider Ownership

87.3% of Brandywine Realty Trust shares are owned by institutional investors. Comparatively, 90.0% of Vornado Realty Trust shares are owned by institutional investors. 4.5% of Brandywine Realty Trust shares are owned by insiders. Comparatively, 9.0% of Vornado Realty Trust 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.

Earnings and Valuation

This table compares Brandywine Realty Trust and Vornado Realty Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brandywine Realty Trust	$498.29 million	1.02	-$178.25 million	($0.82)	-3.57
Vornado Realty Trust	$1.81 billion	3.59	$904.96 million	$0.02	1,740.60

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

Dividends

Brandywine Realty Trust pays an annual dividend of $0.32 per share and has a dividend yield of 10.9%. Vornado Realty Trust pays an annual dividend of $0.74 per share and has a dividend yield of 2.1%. Brandywine Realty Trust pays out -39.0% of its earnings in the form of a dividend. Vornado Realty Trust pays out 3,700.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brandywine Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Brandywine Realty Trust and Vornado Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brandywine Realty Trust	-28.62%	-18.52%	-4.07%
Vornado Realty Trust	3.71%	1.37%	0.43%

Analyst Recommendations

This is a breakdown of recent recommendations for Brandywine Realty Trust and Vornado Realty Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brandywine Realty Trust	3	3	0	0	1.50
Vornado Realty Trust	4	5	4	0	2.00

Brandywine Realty Trust presently has a consensus price target of $3.50, indicating a potential upside of 19.66%. Vornado Realty Trust has a consensus price target of $39.91, indicating a potential upside of 14.64%. Given Brandywine Realty Trust’s higher probable upside, research analysts clearly believe Brandywine Realty Trust is more favorable than Vornado Realty Trust.

Volatility and Risk

Brandywine Realty Trust has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, Vornado Realty Trust has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500.

Summary

Vornado Realty Trust beats Brandywine Realty Trust on 13 of the 16 factors compared between the two stocks.

About Brandywine Realty Trust

Brandywine Realty Trust (NYSE: BDN) is one of the largest, publicly traded, full-service, integrated real estate companies in the United States with a core focus in the Philadelphia and Austin markets. Organized as a real estate investment trust (REIT), we own, develop, lease and manage an urban, town center and transit-oriented portfolio comprising 160 properties and 22.6 million square feet as of September 30, 2023 which excludes assets held for sale. Our purpose is to shape, connect and inspire the world around us through our expertise, the relationships we foster, the communities in which we live and work, and the history we build together.

About Vornado Realty Trust

Vornado Realty Trust is a fully – integrated equity real estate investment trust.