Analyzing SL Green Realty (NYSE:SLG) & Veris Residential (NYSE:VRE)

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Veris Residential and SL Green Realty, as reported by MarketBeat.

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

Veris Residential currently has a consensus price target of $18.25, suggesting a potential upside of 13.88%. SL Green Realty has a consensus price target of $68.38, suggesting a potential upside of 3.83%. Given Veris Residential’s stronger consensus rating and higher probable upside, equities analysts clearly believe Veris Residential is more favorable than SL Green Realty.

Earnings and Valuation

This table compares Veris Residential and SL Green Realty”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	5.32	-$107.26 million	($0.17)	-94.26
SL Green Realty	$913.71 million	4.75	-$557.30 million	($2.50)	-26.34

Veris Residential has higher earnings, but lower revenue 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.

Volatility and Risk

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

Profitability

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

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

Insider and Institutional Ownership

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

Dividends

Veris Residential pays an annual dividend of $0.32 per share and has a dividend yield of 2.0%. SL Green Realty pays an annual dividend of $3.09 per share and has a dividend yield of 4.7%. Veris Residential pays out -188.2% of its earnings in the form of a dividend. SL Green Realty pays out -123.6% 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.

Summary

Veris Residential beats SL Green Realty on 9 of the 15 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 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.