Critical Contrast: Keppel REIT (OTCMKTS:KREVF) & Empire State Realty Trust (NYSE:ESRT)

Keppel REIT (OTCMKTS:KREVF) and Empire State Realty Trust (NYSE:ESRT) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, earnings, valuation and analyst recommendations.

Profitability

This table compares Keppel REIT and Empire State Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Keppel REIT	N/A	N/A	N/A
Empire State Realty Trust	4.96%	2.13%	0.90%

Analyst Ratings

This is a breakdown of current ratings for Keppel REIT and Empire State Realty Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Keppel REIT	0	1	0	0	2.00
Empire State Realty Trust	1	2	2	0	2.20

Empire State Realty Trust has a consensus target price of $10.43, indicating a potential upside of 40.71%. Given Empire State Realty Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Empire State Realty Trust is more favorable than Keppel REIT.

Insider & Institutional Ownership

67.1% of Empire State Realty Trust shares are held by institutional investors. 14.6% of Empire State Realty Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Keppel REIT and Empire State Realty Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Keppel REIT	$195.76 million	16.45	$81.16 million	N/A	N/A
Empire State Realty Trust	$766.18 million	1.64	$51.64 million	$0.21	35.31

Keppel REIT has higher earnings, but lower revenue than Empire State Realty Trust.

Risk and Volatility

Keppel REIT has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, Empire State Realty Trust has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500.

Summary

Empire State Realty Trust beats Keppel REIT on 10 of the 12 factors compared between the two stocks.

About Keppel REIT

Listed by way of an introduction on 28 April 2006, Keppel REIT is one of Asia's leading real estate investment trusts with a portfolio of prime commercial assets in Asia Pacific's key business districts. Keppel REIT's objective is to generate stable income and sustainable long-term total return for its Unitholders by owning and investing in a portfolio of quality income-producing commercial real estate and real estate-related assets in Asia Pacific. Keppel REIT has a portfolio value of over $9.0 billion, comprising properties in Singapore; the key Australian cities of Sydney, Melbourne and Perth; Seoul, South Korea; as well as Tokyo, Japan. Keppel REIT is managed by Keppel REIT Management Limited and sponsored by Keppel, a global asset manager and operator with strong expertise in sustainability-related solutions spanning the areas of infrastructure, real estate and connectivity.

About Empire State Realty Trust

Empire State Realty Trust, Inc. (NYSE: ESRT) is a NYC-focused REIT that owns and operates a portfolio of modernized, amenitized, and well-located office, retail, and multifamily assets. The company is the recognized leader in energy efficiency and indoor environmental quality. ESRT’s flagship Empire State Building – the “World’s Most Famous Building” – includes its Observatory, Tripadvisor’s 2023 Travelers’ Choice Awards: Best of the Best the #1 attraction in the US for two consecutive years. As of September 30, 2023, ESRT’s portfolio is comprised of approximately 8.6 million rentable square feet of office space, 0.7 million rentable square feet of retail space and 727 residential units across three multifamily properties.