Critical Analysis: SL Green Realty Corporation (SLG) & Brandywine Realty Trust (BDN)
SL Green Realty Corporation (NYSE: SLG) and Brandywine Realty Trust (NYSE:BDN) are both mid-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitabiliy, valuation, risk and earnings.
This table compares SL Green Realty Corporation and Brandywine Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SL Green Realty Corporation||7.20%||1.43%||0.72%|
|Brandywine Realty Trust||4.67%||1.48%||0.68%|
Risk & Volatility
SL Green Realty Corporation has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, Brandywine Realty Trust has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.
This is a breakdown of current ratings and target prices for SL Green Realty Corporation and Brandywine Realty Trust, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SL Green Realty Corporation||0||7||6||0||2.46|
|Brandywine Realty Trust||1||2||4||0||2.43|
SL Green Realty Corporation currently has a consensus target price of $117.18, suggesting a potential upside of 17.15%. Brandywine Realty Trust has a consensus target price of $17.50, suggesting a potential upside of 4.67%. Given SL Green Realty Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe SL Green Realty Corporation is more favorable than Brandywine Realty Trust.
SL Green Realty Corporation pays an annual dividend of $3.10 per share and has a dividend yield of 3.1%. Brandywine Realty Trust pays an annual dividend of $0.64 per share and has a dividend yield of 3.8%. SL Green Realty Corporation pays out 319.6% 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 pays out 800.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SL Green Realty Corporation has raised its dividend for 5 consecutive years and Brandywine Realty Trust has raised its dividend for 2 consecutive years.
Earnings & Valuation
This table compares SL Green Realty Corporation and Brandywine Realty Trust’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|SL Green Realty Corporation||$1.53 billion||6.43||$833.52 million||$0.97||103.12|
|Brandywine Realty Trust||$512.29 million||5.69||$227.17 million||$0.08||209.03|
SL Green Realty Corporation has higher revenue and earnings than Brandywine Realty Trust. SL Green Realty Corporation is trading at a lower price-to-earnings ratio than Brandywine Realty Trust, indicating that it is currently the more affordable of the two stocks.
SL Green Realty Corporation beats Brandywine Realty Trust on 12 of the 15 factors compared between the two stocks.
About SL Green Realty Corporation
SL Green Realty Corp. is a self-managed real estate investment trust (REIT), with in-house capabilities in property management, acquisitions and dispositions, financing, development and redevelopment, construction and leasing. The Company operates through two segments: real estate, and debt and preferred equity investments. It acquires, owns, repositions, manages and leases commercial office, retail and multifamily properties in the New York Metropolitan area. Its debt and preferred equity activities include purchases and originations, inclusive of advances under future funding obligations, discount and fee amortization, and paid-in-kind interest. As of December 31, 2016, the Company owned or held interests in 24 consolidated commercial office buildings encompassing approximately 16.1 million rentable square feet and seven unconsolidated commercial office buildings encompassing approximately 6.6 million rentable square feet located primarily in midtown Manhattan.
About Brandywine Realty Trust
Brandywine Realty Trust is a self-administered and self-managed real estate investment trust (REIT). The Company operates through five segments: Pennsylvania Suburbs, Philadelphia Central Business District (CBD), Metropolitan Washington, D.C., Austin, Texas, and Other. The Pennsylvania Suburbs segment includes properties in Chester, Delaware and Montgomery counties in the Philadelphia suburbs. The Philadelphia CBD segment includes properties located in the City of Philadelphia in Pennsylvania. The Metropolitan Washington, D.C. segment includes properties in the District of Columbia, Northern Virginia and Southern Maryland. The Austin, Texas segment includes properties in the City of Austin, Texas. The Other segment includes properties in Burlington and Camden counties in New Jersey, New Castle County in the state of Delaware and the City of Concord in California. As of December 31, 2016, the Company owned 113 properties that had approximately 17.6 million net rentable square feet.
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