Analyzing BTB Real Estate Investment Trust (OTCMKTS:BTBIF) & Vornado Realty Trust (NYSE:VNO)

Vornado Realty Trust (NYSE:VNO) and BTB Real Estate Investment Trust (OTCMKTS:BTBIF) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Institutional & Insider Ownership

90.0% of Vornado Realty Trust shares are owned by institutional investors. Comparatively, 1.7% of BTB Real Estate Investment Trust shares are owned by institutional investors. 8.1% of Vornado Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Vornado Realty Trust and BTB Real Estate Investment Trust’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vornado Realty Trust	$1.81 billion	2.76	$105.49 million	$0.23	114.04
BTB Real Estate Investment Trust	N/A	N/A	N/A	$0.46	5.12

Vornado Realty Trust has higher revenue and earnings than BTB Real Estate Investment Trust. BTB Real Estate Investment 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.

Profitability

This table compares Vornado Realty Trust and BTB Real Estate Investment Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vornado Realty Trust	5.82%	3.22%	0.94%
BTB Real Estate Investment Trust	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings and recommmendations for Vornado Realty Trust and BTB Real Estate Investment Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vornado Realty Trust	5	5	0	0	1.50
BTB Real Estate Investment Trust	0	0	0	0	N/A

Vornado Realty Trust currently has a consensus target price of $24.80, suggesting a potential downside of 5.45%. Given Vornado Realty Trust’s higher possible upside, equities research analysts plainly believe Vornado Realty Trust is more favorable than BTB Real Estate Investment Trust.

Dividends

Vornado Realty Trust pays an annual dividend of $1.20 per share and has a dividend yield of 4.6%. BTB Real Estate Investment Trust pays an annual dividend of $0.40 per share and has a dividend yield of 17.3%. Vornado Realty Trust pays out 521.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BTB Real Estate Investment Trust pays out 88.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BTB Real Estate Investment Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Vornado Realty Trust beats BTB Real Estate Investment Trust on 8 of the 11 factors compared between the two stocks.

About Vornado Realty Trust

Vornado is a fully integrated real estate investment trust (REIT) with a portfolio of premier New York City office and retail assets and the developer of the new PENN DISTRICT. While concentrated in New York, Vornado also owns the premier assets in both Chicago and San Francisco. Vornado is a real estate industry leader in sustainability, with over 27 million square feet of LEED-certified buildings and over 23 million square feet at LEED Gold or Platinum.

About BTB Real Estate Investment Trust

BTB is a real estate investment trust listed on the Toronto Stock Exchange. BTB is a property owner active in Canada and owns 77 properties, representing a total leasable area of approximately 6.1 million square feet and a total asset value that surpasses $1.2 billion. BTB offers a distribution reinvestment plan to unitholders whereby the participants may elect to have their monthly cash distribution reinvested in additional units of BTB at a price based on the weighted average price for BTB's Units on the Toronto Stock Exchange for the five trading days immediately preceding the distribution date, discounted by 3%.