Comparing Veris Residential (NYSE:VRE) & Equinix (NASDAQ:EQIX)

Veris Residential (NYSE:VREGet Free Report) and Equinix (NASDAQ:EQIXGet Free Report) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitability, analyst recommendations, institutional ownership and valuation.

Insider and Institutional Ownership

93.0% of Veris Residential shares are held by institutional investors. Comparatively, 94.9% of Equinix shares are held by institutional investors. 15.0% of Veris Residential shares are held by company insiders. Comparatively, 0.3% of Equinix shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Veris Residential has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, Equinix has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Veris Residential and Equinix, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Veris Residential 0 1 2 0 2.67
Equinix 0 6 8 1 2.67

Veris Residential presently has a consensus target price of $17.00, indicating a potential upside of 8.83%. Equinix has a consensus target price of $869.76, indicating a potential upside of 10.12%. Given Equinix’s higher probable upside, analysts plainly believe Equinix is more favorable than Veris Residential.

Profitability

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

Net Margins Return on Equity Return on Assets
Veris Residential -32.51% -10.42% -3.99%
Equinix 11.32% 7.73% 2.95%

Dividends

Veris Residential pays an annual dividend of $0.21 per share and has a dividend yield of 1.3%. Equinix pays an annual dividend of $17.04 per share and has a dividend yield of 2.2%. Veris Residential pays out -21.0% of its earnings in the form of a dividend. Equinix pays out 170.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equinix has raised its dividend for 8 consecutive years. Equinix is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Veris Residential and Equinix’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Veris Residential $279.86 million 5.17 -$107.26 million ($1.00) -15.62
Equinix $8.19 billion 9.13 $969.18 million $9.97 79.22

Equinix has higher revenue and earnings than Veris Residential. Veris Residential is trading at a lower price-to-earnings ratio than Equinix, indicating that it is currently the more affordable of the two stocks.

Summary

Equinix beats Veris Residential on 14 of the 17 factors compared between the two stocks.

About Veris Residential

(Get Free Report)

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 Equinix

(Get Free Report)

Equinix (Nasdaq: EQIX) is the world's digital infrastructure company . Digital leaders harness Equinix's trusted platform to bring together and interconnect foundational infrastructure at software speed. Equinix enables organizations to access all the right places, partners and possibilities to scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value, while supporting their sustainability goals.

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