CoreSite Realty Corporation (NYSE: COR) and Washington Prime Group (NYSE:WPG) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.

Dividends

CoreSite Realty Corporation pays an annual dividend of $3.60 per share and has a dividend yield of 3.3%. Washington Prime Group pays an annual dividend of $1.00 per share and has a dividend yield of 12.3%. CoreSite Realty Corporation pays out 206.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Washington Prime Group pays out 108.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Washington Prime Group has raised its dividend for 6 consecutive years. Washington Prime Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares CoreSite Realty Corporation and Washington Prime Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CoreSite Realty Corporation $444.59 million 8.35 $232.47 million $1.74 62.35
Washington Prime Group $819.27 million 1.84 $487.39 million $0.92 8.83

Washington Prime Group has higher revenue and earnings than CoreSite Realty Corporation. Washington Prime Group is trading at a lower price-to-earnings ratio than CoreSite Realty Corporation, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

98.3% of CoreSite Realty Corporation shares are owned by institutional investors. Comparatively, 92.0% of Washington Prime Group shares are owned by institutional investors. 1.5% of CoreSite Realty Corporation shares are owned by insiders. Comparatively, 0.3% of Washington Prime Group shares are owned by 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.

Profitability

This table compares CoreSite Realty Corporation and Washington Prime Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CoreSite Realty Corporation 15.15% 14.14% 4.69%
Washington Prime Group 22.65% 17.36% 3.73%

Analyst Recommendations

This is a summary of current recommendations and price targets for CoreSite Realty Corporation and Washington Prime Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CoreSite Realty Corporation 0 8 4 0 2.33
Washington Prime Group 1 0 0 0 1.00

CoreSite Realty Corporation presently has a consensus target price of $95.11, suggesting a potential downside of 12.33%. Given CoreSite Realty Corporation’s stronger consensus rating and higher probable upside, research analysts clearly believe CoreSite Realty Corporation is more favorable than Washington Prime Group.

Volatility and Risk

CoreSite Realty Corporation has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Washington Prime Group has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.

Summary

CoreSite Realty Corporation beats Washington Prime Group on 9 of the 17 factors compared between the two stocks.

CoreSite Realty Corporation Company Profile

CoreSite Realty Corporation (CoreSite) is an integrated, self-administered and self-managed real estate investment trust. The Company, through its controlling interest in CoreSite, L.P., is engaged in the business of ownership, acquisition, construction and operation of data centers across a range of markets in the United States, including the Northern Virginia, New York and San Francisco Bay areas, Chicago, Los Angeles, Boston, Miami and Denver. The enterprises, network operators, cloud providers and supporting service providers choose CoreSite to connect and protect their data, applications and computing workloads. Its offerings include the CoreSite Open Cloud Exchange and the Any2 Internet Exchange. As of December 31, 2016, it had offered cloud-enabled, network data center campuses with over 20,000 interconnections across its portfolio and direct access to carriers and Internet service providers, cloud and information technology service providers, and inter site connectivity.

Washington Prime Group Company Profile

Washington Prime Group Inc. (WPG Inc.), formerly WP Glimcher Inc., operates as a self-administered and self-managed real estate investment trust (REIT). The Company’s primary business is the ownership, development and management of retail real estate within the United States. The Company owns, develops and manages enclosed retail properties and community centers. As of December 31, 2016, its assets consisted of material interests in 114 shopping centers in the United States, consisting of approximately 63 million square feet of gross leasable area. The Company also owns parcels of land, which can be used for either the development of new shopping centers or the expansion of existing properties. Washington Prime Group, L.P. is the Company’s majority-owned partnership subsidiary that owns, develops and manages, through its affiliates, all of WPG Inc.’s real estate properties and other assets. Its properties include Irving Mall, Lindale Mall, Markland Plaza and Royal Eagle Plaza.

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