Alexandria Real Estate Equities (NYSE:ARE) and CoreSite Realty (NYSE:COR) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, profitability, analyst recommendations, institutional ownership and dividends.
Dividends
Alexandria Real Estate Equities pays an annual dividend of $4.36 per share and has a dividend yield of 2.4%. CoreSite Realty pays an annual dividend of $4.92 per share and has a dividend yield of 3.9%. Alexandria Real Estate Equities pays out 62.6% of its earnings in the form of a dividend. CoreSite Realty pays out 96.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alexandria Real Estate Equities has increased its dividend for 10 consecutive years and CoreSite Realty has increased its dividend for 1 consecutive years.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Alexandria Real Estate Equities and CoreSite Realty, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Alexandria Real Estate Equities | 0 | 1 | 5 | 0 | 2.83 |
CoreSite Realty | 2 | 3 | 4 | 0 | 2.22 |
Alexandria Real Estate Equities presently has a consensus target price of $160.5714, suggesting a potential downside of 10.42%. CoreSite Realty has a consensus target price of $131.50, suggesting a potential upside of 3.32%. Given CoreSite Realty's higher possible upside, analysts plainly believe CoreSite Realty is more favorable than Alexandria Real Estate Equities.
Valuation and Earnings
This table compares Alexandria Real Estate Equities and CoreSite Realty's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Alexandria Real Estate Equities | $1.53 billion | 16.00 | $363.17 million | $6.96 | 25.75 |
CoreSite Realty | $572.73 million | 9.55 | $75.84 million | $5.10 | 24.95 |
Alexandria Real Estate Equities has higher revenue and earnings than CoreSite Realty. CoreSite Realty is trading at a lower price-to-earnings ratio than Alexandria Real Estate Equities, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
87.6% of Alexandria Real Estate Equities shares are owned by institutional investors. Comparatively, 95.2% of CoreSite Realty shares are owned by institutional investors. 1.1% of Alexandria Real Estate Equities shares are owned by company insiders. Comparatively, 1.5% of CoreSite Realty shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Volatility and Risk
Alexandria Real Estate Equities has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, CoreSite Realty has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500.
Profitability
This table compares Alexandria Real Estate Equities and CoreSite Realty's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Alexandria Real Estate Equities | 29.07% | 4.79% | 2.66% |
CoreSite Realty | 13.19% | 51.47% | 3.67% |
Summary
Alexandria Real Estate Equities beats CoreSite Realty on 10 of the 17 factors compared between the two stocks.