Analyzing Vonovia (OTCMKTS:VONOY) and Corporación Inmobiliaria Vesta (NYSE:VTMX)

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

Profitability

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

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

Dividends

Vonovia pays an annual dividend of $0.41 per share and has a dividend yield of 3.1%. Corporación Inmobiliaria Vesta pays an annual dividend of $0.15 per share and has a dividend yield of 0.4%. Vonovia pays out -10.1% of its earnings in the form of a dividend. Corporación Inmobiliaria Vesta pays out 3.4% 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.

Analyst Recommendations

This is a breakdown of current recommendations for Vonovia and Corporación Inmobiliaria Vesta, as reported by MarketBeat.com.

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

Corporación Inmobiliaria Vesta has a consensus price target of $42.00, suggesting a potential upside of 20.41%. Given Corporación Inmobiliaria Vesta’s higher probable upside, analysts plainly believe Corporación Inmobiliaria Vesta is more favorable than Vonovia.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vonovia	$5.43 billion	3.91	-$678.31 million	($4.07)	-3.20
Corporación Inmobiliaria Vesta	$214.47 million	132.96	$316.60 million	$4.46	7.82

Corporación Inmobiliaria Vesta has lower revenue, but higher earnings 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.

Insider and Institutional Ownership

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

Summary

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

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.

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.