Financial Survey: New York REIT (NYSE:NYRT) vs. Kilroy Realty Corporation (KRC)

New York REIT (NYSE: NYRT) and Kilroy Realty Corporation (NYSE:KRC) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, institutional ownership, risk and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and target prices for New York REIT and Kilroy Realty Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New York REIT 0 0 1 0 3.00
Kilroy Realty Corporation 0 4 4 0 2.50

New York REIT presently has a consensus price target of $9.75, indicating a potential upside of 24.68%. Kilroy Realty Corporation has a consensus price target of $79.00, indicating a potential upside of 14.23%. Given New York REIT’s stronger consensus rating and higher probable upside, research analysts plainly believe New York REIT is more favorable than Kilroy Realty Corporation.

Dividends

Kilroy Realty Corporation pays an annual dividend of $1.70 per share and has a dividend yield of 2.5%. New York REIT does not pay a dividend. Kilroy Realty Corporation pays out 122.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. New York REIT has increased its dividend for 2 consecutive years.

Earnings and Valuation

This table compares New York REIT and Kilroy Realty Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
New York REIT $174.99 million 7.45 $52.35 million ($0.50) -15.64
Kilroy Realty Corporation $691.90 million 9.83 $400.80 million $1.39 49.76

Kilroy Realty Corporation has higher revenue and earnings than New York REIT. New York REIT is trading at a lower price-to-earnings ratio than Kilroy Realty Corporation, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

New York REIT has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Kilroy Realty Corporation has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.

Institutional & Insider Ownership

70.7% of New York REIT shares are held by institutional investors. Comparatively, 99.7% of Kilroy Realty Corporation shares are held by institutional investors. 0.2% of New York REIT shares are held by company insiders. Comparatively, 2.3% of Kilroy Realty Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares New York REIT and Kilroy Realty Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New York REIT -51.49% -5.71% -2.70%
Kilroy Realty Corporation 21.75% 4.11% 2.24%

Summary

Kilroy Realty Corporation beats New York REIT on 11 of the 17 factors compared between the two stocks.

About New York REIT

New York REIT, Inc. is a real estate investment trust. The Company owns a portfolio of commercial real estate. The Company’s business is primarily conducted through New York Recovery Operating Partnership, L.P. As of December 31, 2016, the Company owned 19 properties, which aggregated 3.3 million rentable square feet. The Company holds interests in properties of various types, such as office, retail, hotel, parking and storage. The Company’s properties include Design Center, 416 Washington Street, 50 Varick Street, 1440 Broadway, One Worldwide Plaza, 256 West 38th Street, 229 West 36th Street, 333 West 34th Street, 367-387 Bleecker Street, 33 West 56th Street (garage) and 350 West 42nd Street.

About Kilroy Realty Corporation

Kilroy Realty Corporation is a real estate investment trust (REIT). The Company operates through the office properties segment. It operates in office and mixed-use submarkets along the West Coast. It owns, develops, acquires and manages real estate assets, consisting primarily of Class A properties in the coastal regions of Los Angeles, Orange County, San Diego County, the San Francisco Bay Area and Greater Seattle. It owns its interests in all of its real estate assets through Kilroy Realty, L.P. (Operating Partnership) and the Kilroy Realty Finance Partnership, L.P. (Finance Partnership). Its stabilized portfolio includes all of its properties with the exception of development and redevelopment properties under construction or committed for construction, lease-up properties, real estate assets held for sale and undeveloped land. As of December 31, 2016, its stabilized portfolio of operating properties included 108 stabilized office properties and a stabilized residential property.

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