Financial Comparison: Granite Real Estate Inc. Staple (NYSE:GRP.U) and Empire State Realty Trust (NYSE:ESRT)

Financial Comparison: Granite Real Estate Inc. Staple (NYSE:GRP.U) and Empire State Realty Trust (NYSE:ESRT)

Roger Pettingell Sarasota Real Estate

Granite Real Estate Inc. Staple (NYSE:GRP.UGet Rating) and Empire State Realty Trust (NYSE:ESRTGet Rating) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, institutional ownership, profitability and earnings.

Dividends

Granite Real Estate Inc. Staple pays an annual dividend of $2.39 per share and has a dividend yield of 4.4%. Empire State Realty Trust pays an annual dividend of $0.14 per share and has a dividend yield of 2.0%. Granite Real Estate Inc. Staple pays out 17.4% of its earnings in the form of a dividend. Empire State Realty Trust pays out 280.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Granite Real Estate Inc. Staple is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Granite Real Estate Inc. Staple and Empire State Realty Trust’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Granite Real Estate Inc. Staple $313.95 million 11.47 $1.05 billion $13.72 3.98
Empire State Realty Trust $624.09 million 1.91 -$6.51 million $0.05 142.00

Granite Real Estate Inc. Staple has higher earnings, but lower revenue than Empire State Realty Trust. Granite Real Estate Inc. Staple is trading at a lower price-to-earnings ratio than Empire State Realty Trust, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Granite Real Estate Inc. Staple and Empire State Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Granite Real Estate Inc. Staple 270.82% 21.04% 13.09%
Empire State Realty Trust 1.64% 0.67% 0.27%

Volatility and Risk

Granite Real Estate Inc. Staple has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Empire State Realty Trust has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500.

Institutional & Insider Ownership

53.9% of Granite Real Estate Inc. Staple shares are held by institutional investors. Comparatively, 76.1% of Empire State Realty Trust shares are held by institutional investors. 13.3% of Empire State Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Granite Real Estate Inc. Staple and Empire State Realty Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Granite Real Estate Inc. Staple 0 0 1 0 3.00
Empire State Realty Trust 2 2 1 0 1.80

Empire State Realty Trust has a consensus price target of $7.88, indicating a potential upside of 10.92%. Given Empire State Realty Trust’s higher possible upside, analysts plainly believe Empire State Realty Trust is more favorable than Granite Real Estate Inc. Staple.

Summary

Granite Real Estate Inc. Staple beats Empire State Realty Trust on 9 of the 15 factors compared between the two stocks.

About Granite Real Estate Inc. Staple

(Get Rating)

Granite Real Estate Investment Trust is engaged in the ownership and management of predominantly industrial properties in Canada, the United States, Mexico and Europe. The Company owns and manages rental income properties. Its services include sourcing and real estate acquisition, site development, assisting with government approvals and re-zoning to specific uses, build-to-suit construction, property renovation, project management and long-term leasing. Granite Real Estate Investment Trust, formerly known as Granite Real Estate Inc., is based in Toronto, Canada.

About Empire State Realty Trust

(Get Rating)

Empire State Realty Trust, Inc. (NYSE: ESRT), a leading real estate investment trust (REIT), 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 World’s Most Famous Building. Headquartered in New York, New York, the Company’s office and retail portfolio covers 10.1 million rentable square feet, as of September 30, 2020, consisting of 9.4 million rentable square feet in 14 office properties, including nine in Manhattan, three in Fairfield County, Connecticut, and two in Westchester County, New York; and approximately 700,000 rentable square feet in the retail portfolio. Long the leader in energy efficiency retrofits and Indoor Environmental Quality, Empire State Realty Trust is the first commercial real estate portfolio in the U.S. to achieve the WELL Health-Safety Rating.

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