Contrasting Acadia Realty Trust (NYSE:AKR) and Orion Office REIT (NYSE:ONL)

Orion Office REIT (NYSE:ONL) and Acadia Realty Trust (NYSE:AKR) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Insider & Institutional Ownership

80.0% of Orion Office REIT shares are owned by institutional investors. Comparatively, 97.7% of Acadia Realty Trust shares are owned by institutional investors. 0.2% of Orion Office REIT shares are owned by company insiders. Comparatively, 2.8% of Acadia Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Orion Office REIT and Acadia Realty Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orion Office REIT	0	1	0	0	2.00
Acadia Realty Trust	0	2	2	0	2.50

Acadia Realty Trust has a consensus target price of $23.00, suggesting a potential upside of 0.34%. Given Acadia Realty Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Acadia Realty Trust is more favorable than Orion Office REIT.

Earnings & Valuation

This table compares Orion Office REIT and Acadia Realty Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orion Office REIT	$195.04 million	1.11	-$57.30 million	($1.54)	-2.51
Acadia Realty Trust	$338.69 million	8.10	$19.87 million	$0.09	254.70

Acadia Realty Trust has higher revenue and earnings than Orion Office REIT. Orion Office REIT is trading at a lower price-to-earnings ratio than Acadia Realty Trust, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Orion Office REIT and Acadia Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orion Office REIT	-50.76%	-10.28%	-6.26%
Acadia Realty Trust	3.07%	0.48%	0.25%

Dividends

Orion Office REIT pays an annual dividend of $0.40 per share and has a dividend yield of 10.4%. Acadia Realty Trust pays an annual dividend of $0.76 per share and has a dividend yield of 3.3%. Orion Office REIT pays out -26.0% of its earnings in the form of a dividend. Acadia Realty Trust pays out 844.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Orion Office REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Orion Office REIT has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, Acadia Realty Trust has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500.

Summary

Acadia Realty Trust beats Orion Office REIT on 14 of the 16 factors compared between the two stocks.

About Orion Office REIT

Orion Office REIT specializes in the ownership, acquisition and management of a diversified portfolio of mission-critical and corporate headquarters office buildings in high-quality suburban markets across the U.S. The portfolio is leased primarily on a single-tenant net lease basis to creditworthy tenants. The company's team of experienced industry leaders employs a proven, cycle-tested investment evaluation framework which serves as the lens through which capital allocation decisions are made for the current portfolio and future acquisitions.

About Acadia Realty Trust

Acadia Realty Trust is an equity real estate investment trust focused on delivering long-term, profitable growth via its dual Core Portfolio and Fund operating platforms and its disciplined, location-driven investment strategy. Acadia Realty Trust is accomplishing this goal by building a best-in-class core real estate portfolio with meaningful concentrations of assets in the nation's most dynamic corridors; making profitable opportunistic and value-add investments through its series of discretionary, institutional funds; and maintaining a strong balance sheet.