Analyzing WeWork (NYSE:WE) & Spirit Realty Capital (NYSE:SRC)

Spirit Realty Capital (NYSE:SRCGet Rating) and WeWork (NYSE:WEGet Rating) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for Spirit Realty Capital and WeWork, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spirit Realty Capital 0 6 5 0 2.45
WeWork 0 1 5 0 2.83

Spirit Realty Capital presently has a consensus target price of $46.45, suggesting a potential upside of 10.40%. WeWork has a consensus target price of $7.83, suggesting a potential upside of 193.38%. Given WeWork’s stronger consensus rating and higher possible upside, analysts clearly believe WeWork is more favorable than Spirit Realty Capital.

Profitability

This table compares Spirit Realty Capital and WeWork’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Spirit Realty Capital 37.70% 6.16% 3.22%
WeWork -73.71% N/A -11.85%

Volatility and Risk

Spirit Realty Capital has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, WeWork has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Valuation & Earnings

This table compares Spirit Realty Capital and WeWork’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Spirit Realty Capital $608.39 million 9.66 $171.70 million $1.90 22.15
WeWork $2.57 billion 0.76 -$4.44 billion N/A N/A

Spirit Realty Capital has higher earnings, but lower revenue than WeWork.

Institutional and Insider Ownership

96.4% of Spirit Realty Capital shares are owned by institutional investors. Comparatively, 84.2% of WeWork shares are owned by institutional investors. 0.6% of Spirit Realty Capital shares are owned by company insiders. Comparatively, 5.8% of WeWork shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Spirit Realty Capital beats WeWork on 7 of the 11 factors compared between the two stocks.

About Spirit Realty Capital

(Get Rating)

Spirit Realty Capital, Inc. (NYSE: SRC) is a premier net-lease REIT that primarily invests in single-tenant, operationally essential real estate assets, subject to long-term leases. As of September 30, 2020, our diverse portfolio of 1,778 owned properties, with an aggregate leasable area of 37.2 million square feet in 48 states, included retail, industrial and office buildings leased to 296 tenants across 28 retail industries.

About WeWork

(Get Rating)

WeWork Inc. provides flexible workspace solutions to individuals and organizations worldwide. The company offers workstation, private office, and customized floor solutions; and various amenities and services, such as private phone booths, internet, high-speed business printers and copiers, mail and package handling, front desk services, off-peak building access, common areas, and daily enhanced cleaning solutions. It also offers various value-add services; business and technical service solutions, including professional employer organization and payroll services, remote workforce solutions, human resources benefits, dedicated bandwidth, and IT equipment co-location solutions. In addition, the company offers workspace management solutions, which enable landlords and operators to power flexible spaces and provide direct access to an established customer base. As of December 31, 2021, its real estate portfolio includes 756 locations. WeWork Inc. was founded in 2010 and is headquartered in New York, New York.

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