Head to Head Analysis: Corporación Inmobiliaria Vesta (NYSE:VTMX) vs. Vonovia (OTCMKTS:VONOY)

Corporación Inmobiliaria Vesta (NYSE:VTMX) and Vonovia (OTCMKTS:VONOY) are both large-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.

Insider & Institutional Ownership

6.9% of Corporación Inmobiliaria Vesta shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for Corporación Inmobiliaria Vesta and Vonovia, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corporación Inmobiliaria Vesta	0	0	2	0	3.00
Vonovia	0	0	0	0	N/A

Corporación Inmobiliaria Vesta presently has a consensus target price of $42.00, suggesting a potential upside of 17.68%. Given Corporación Inmobiliaria Vesta’s higher probable upside, analysts plainly believe Corporación Inmobiliaria Vesta is more favorable than Vonovia.

Dividends

Corporación Inmobiliaria Vesta pays an annual dividend of $0.14 per share and has a dividend yield of 0.4%. Vonovia pays an annual dividend of $0.41 per share and has a dividend yield of 3.1%. Corporación Inmobiliaria Vesta pays out 3.1% of its earnings in the form of a dividend. Vonovia pays out -10.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Vonovia is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Corporación Inmobiliaria Vesta and Vonovia’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corporación Inmobiliaria Vesta	$214.47 million	136.04	$316.60 million	$4.46	8.00
Vonovia	$5.43 billion	4.00	-$678.31 million	($4.07)	-3.28

Corporación Inmobiliaria Vesta has higher earnings, but lower revenue than Vonovia. Vonovia is trading at a lower price-to-earnings ratio than Corporación Inmobiliaria Vesta, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Corporación Inmobiliaria Vesta and Vonovia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Corporación Inmobiliaria Vesta	159.04%	16.91%	10.18%
Vonovia	-110.61%	-18.84%	-6.23%

Summary

Corporación Inmobiliaria Vesta beats Vonovia on 10 of the 13 factors compared between the two stocks.

About Corporación Inmobiliaria Vesta

Corporación Inmobiliaria Vesta, S.A.B. de C.V., together with its subsidiaries, acquires, develops, manages, operates, and leases industrial buildings and distribution facilities in Mexico. The company was incorporated in 1998 and is headquartered in Mexico City, Mexico.

About Vonovia

Vonovia SE operates as an integrated residential real estate company in Europe. It operates through four segments: Rental, Value-Add, Recurring Sales, and Development. The company offers property management services; property-related services; and value-added services, including maintenance and modernization of residential properties, craftsmen and residential environment organization, condominium administration, cable TV, metering, energy supply, and insurances services. It also engages in the sale of individual condominiums and single-family houses; and project development activities. The company was formerly known as Deutsche Annington Immobilien SE and changed its name to Vonovia SE in August 2015. Vonovia SE was founded in 1998 and is headquartered in Bochum, Germany.