Vornado Realty Trust (NYSE:VNO) & First Industrial Realty Trust (NYSE:FR) Critical Analysis

First Industrial Realty Trust (NYSE:FR) and Vornado Realty Trust (NYSE:VNO) are both mid-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.

Valuation and Earnings

This table compares First Industrial Realty Trust and Vornado Realty Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Industrial Realty Trust	$684.44 million	9.74	$287.55 million	$2.02	24.93
Vornado Realty Trust	$1.81 billion	4.14	$70.39 million	$0.52	75.15

First Industrial Realty Trust has higher earnings, but lower revenue than Vornado Realty Trust. First Industrial Realty Trust is trading at a lower price-to-earnings ratio than Vornado Realty Trust, indicating that it is currently the more affordable of the two stocks.

Dividends

First Industrial Realty Trust pays an annual dividend of $1.78 per share and has a dividend yield of 3.5%. Vornado Realty Trust pays an annual dividend of $0.74 per share and has a dividend yield of 1.9%. First Industrial Realty Trust pays out 88.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Vornado Realty Trust pays out 142.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First Industrial Realty Trust has raised its dividend for 12 consecutive years. First Industrial Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

99.8% of First Industrial Realty Trust shares are held by institutional investors. Comparatively, 90.0% of Vornado Realty Trust shares are held by institutional investors. 1.1% of First Industrial Realty Trust shares are held by insiders. Comparatively, 8.4% of Vornado Realty Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

First Industrial Realty Trust has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Vornado Realty Trust has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.

Profitability

This table compares First Industrial Realty Trust and Vornado Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Industrial Realty Trust	42.94%	10.64%	5.51%
Vornado Realty Trust	3.94%	1.60%	0.44%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for First Industrial Realty Trust and Vornado Realty Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Industrial Realty Trust	0	6	7	0	2.54
Vornado Realty Trust	2	6	3	0	2.09

First Industrial Realty Trust currently has a consensus price target of $56.58, suggesting a potential upside of 12.36%. Vornado Realty Trust has a consensus price target of $38.00, suggesting a potential downside of 2.76%. Given First Industrial Realty Trust’s stronger consensus rating and higher possible upside, analysts plainly believe First Industrial Realty Trust is more favorable than Vornado Realty Trust.

Summary

First Industrial Realty Trust beats Vornado Realty Trust on 13 of the 17 factors compared between the two stocks.

About First Industrial Realty Trust

First Industrial Realty Trust, Inc. (NYSE: FR) is a leading U.S.-only owner, operator, developer and acquirer of logistics properties. Through our fully integrated operating and investing platform, we provide high quality facilities and industry-leading customer service to multinational corporations and regional firms that are essential for their supply chains. Our portfolio and new investments are concentrated in 15 target MSAs with an emphasis on supply-constrained, coastally oriented markets. In total, we own and have under development approximately 68.5 million square feet of industrial space as of December 31, 2023.

About Vornado Realty Trust

Vornado Realty Trust is a fully – integrated equity real estate investment trust.