Head to Head Analysis: NorthStar Realty Europe Corp. (NRE) vs. its Competitors

NorthStar Realty Europe Corp. (NYSE: NRE) is one of 20 publicly-traded companies in the “Office REITs” industry, but how does it contrast to its peers? We will compare NorthStar Realty Europe Corp. to related companies based off the strength of its risk, profitability, valuation, dividends, earnings, analyst recommendations and institutional ownership.

Dividends

NorthStar Realty Europe Corp. pays an annual dividend of $0.60 per share and has a dividend yield of 4.8%. NorthStar Realty Europe Corp. pays out -133.3% of its earnings in the form of a dividend. As a group, “Office REITs” companies pay a dividend yield of 3.4% and pay out 249.2% of their earnings in the form of a dividend. NorthStar Realty Europe Corp. is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Profitability

This table compares NorthStar Realty Europe Corp. and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NorthStar Realty Europe Corp. -18.57% 7.73% 2.46%
NorthStar Realty Europe Corp. Competitors 5.41% 1.37% 0.69%

Analyst Ratings

This is a breakdown of recent ratings for NorthStar Realty Europe Corp. and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NorthStar Realty Europe Corp. 0 0 0 0 N/A
NorthStar Realty Europe Corp. Competitors 172 632 610 10 2.32

All “Office REITs” companies have a potential upside of 10.17%. Given NorthStar Realty Europe Corp.’s peers higher possible upside, analysts plainly believe NorthStar Realty Europe Corp. has less favorable growth aspects than its peers.

Institutional and Insider Ownership

70.0% of NorthStar Realty Europe Corp. shares are owned by institutional investors. Comparatively, 85.9% of shares of all “Office REITs” companies are owned by institutional investors. 2.2% of NorthStar Realty Europe Corp. shares are owned by insiders. Comparatively, 2.8% of shares of all “Office REITs” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

NorthStar Realty Europe Corp. has a beta of 2.5, meaning that its share price is 150% more volatile than the S&P 500. Comparatively, NorthStar Realty Europe Corp.’s peers have a beta of 0.91, meaning that their average share price is 9% less volatile than the S&P 500.

Valuation and Earnings

This table compares NorthStar Realty Europe Corp. and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
NorthStar Realty Europe Corp. $131.25 million $37.01 million -27.87
NorthStar Realty Europe Corp. Competitors $648.15 million $343.67 million 58.88

NorthStar Realty Europe Corp.’s peers have higher revenue and earnings than NorthStar Realty Europe Corp.. NorthStar Realty Europe Corp. is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently the more affordable than other companies in its industry.

Summary

NorthStar Realty Europe Corp. peers beat NorthStar Realty Europe Corp. on 6 of the 11 factors compared.

NorthStar Realty Europe Corp. Company Profile

NorthStar Realty Europe Corp. is a real estate investment trust (REIT). The Company is a European focused commercial real estate company with primary office properties in cities within Germany, the United Kingdom and France. Its objective is to provide its stockholders with stable and recurring cash flow supplemented by capital growth over time. The Company conducts its business through two segments: Real Estate and Corporate. Its European commercial real estate business is primarily focused on office properties. Its portfolio consists of approximately 48 properties and a total of approximately 495,588 square meters of rentable space, located in various European markets, including Frankfurt, Hamburg, Berlin, London, Paris, Amsterdam, Milan, Brussels and Madrid. Its overall portfolio is over 87% occupied. In addition, it owns over two hotels, which are leased to third-party operators. It is externally managed and advised by an affiliate of NorthStar Asset Management Group Inc. (NSAM).

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