SL Green Realty (NYSE:SLG – Get Free Report) and Phillips Edison & Company, Inc. (NASDAQ:PECO – Get Free Report) are both mid-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.
Institutional and Insider Ownership
90.0% of SL Green Realty shares are owned by institutional investors. Comparatively, 80.7% of Phillips Edison & Company, Inc. shares are owned by institutional investors. 5.1% of SL Green Realty shares are owned by insiders. Comparatively, 7.9% of Phillips Edison & Company, Inc. shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
SL Green Realty has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500. Comparatively, Phillips Edison & Company, Inc. has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SL Green Realty | $855.83 million | 4.28 | -$557.30 million | ($8.26) | -6.74 |
| Phillips Edison & Company, Inc. | $610.12 million | 6.47 | $56.85 million | $0.46 | 70.09 |
Phillips Edison & Company, Inc. has lower revenue, but higher earnings than SL Green Realty. SL Green Realty is trading at a lower price-to-earnings ratio than Phillips Edison & Company, Inc., indicating that it is currently the more affordable of the two stocks.
Dividends
SL Green Realty pays an annual dividend of $3.00 per share and has a dividend yield of 5.4%. Phillips Edison & Company, Inc. pays an annual dividend of $1.17 per share and has a dividend yield of 3.6%. SL Green Realty pays out -36.3% of its earnings in the form of a dividend. Phillips Edison & Company, Inc. pays out 254.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SL Green Realty is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares SL Green Realty and Phillips Edison & Company, Inc.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SL Green Realty | -64.45% | -12.75% | -5.24% |
| Phillips Edison & Company, Inc. | 9.33% | 2.21% | 1.21% |
Analyst Ratings
This is a summary of current ratings for SL Green Realty and Phillips Edison & Company, Inc., as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SL Green Realty | 6 | 5 | 3 | 0 | 1.79 |
| Phillips Edison & Company, Inc. | 1 | 4 | 3 | 0 | 2.25 |
SL Green Realty currently has a consensus price target of $46.29, indicating a potential downside of 16.84%. Phillips Edison & Company, Inc. has a consensus price target of $37.43, indicating a potential upside of 16.09%. Given Phillips Edison & Company, Inc.’s stronger consensus rating and higher probable upside, analysts plainly believe Phillips Edison & Company, Inc. is more favorable than SL Green Realty.
Summary
Phillips Edison & Company, Inc. beats SL Green Realty on 10 of the 15 factors compared between the two stocks.
About SL Green Realty
3SL Green Realty Corp., Manhattan’s largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of June 30, 2022, SL Green held interests in 64 buildings totaling 34.4 million square feet. This included ownership interests in 26.3 million square feet of Manhattan buildings and 7.2 million square feet securing debt and preferred equity investments.
About Phillips Edison & Company, Inc.
Phillips Edison & Company, Inc. (PECO) is one of the nation's largest owners and operators of omni-channel grocery-anchored shopping centers. Founded in 1991, PECO has generated strong results through its vertically-integrated operating platform and national footprint of well-occupied shopping centers. PECO's centers feature a mix of national and regional retailers providing necessity-based goods and services in fundamentally strong markets throughout the United States. PECO's top grocery anchors include Kroger, Publix, Albertsons and Ahold Delhaize. As of December 31, 2023, PECO managed 301 shopping centers, including 281 wholly-owned centers comprising 32.2 million square feet across 31 states and 20 shopping centers owned in one institutional joint venture. PECO is exclusively focused on creating great omni-channel, grocery-anchored shopping experiences and improving communities, one neighborhood shopping center at a time.
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