CoreSite Realty (COR) versus TIER REIT (TIER) Head to Head Survey

TIER REIT (NYSE:TIER) and CoreSite Realty (NYSE:COR) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.

Earnings & Valuation

This table compares TIER REIT and CoreSite Realty’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TIER REIT $218.52 million 6.84 -$5.02 million $1.61 16.72
CoreSite Realty $544.39 million 7.91 $77.92 million $5.06 23.07

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

Dividends

TIER REIT pays an annual dividend of $0.72 per share and has a dividend yield of 2.7%. CoreSite Realty pays an annual dividend of $4.40 per share and has a dividend yield of 3.8%. TIER REIT pays out 44.7% of its earnings in the form of a dividend. CoreSite Realty pays out 87.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TIER REIT has raised its dividend for 3 consecutive years and CoreSite Realty has raised its dividend for 8 consecutive years. CoreSite Realty is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current ratings and target prices for TIER REIT and CoreSite Realty, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TIER REIT 0 2 2 0 2.50
CoreSite Realty 1 8 2 0 2.09

TIER REIT currently has a consensus price target of $27.75, suggesting a potential upside of 3.10%. CoreSite Realty has a consensus price target of $111.40, suggesting a potential downside of 4.56%. Given TIER REIT’s stronger consensus rating and higher probable upside, equities analysts plainly believe TIER REIT is more favorable than CoreSite Realty.

Profitability

This table compares TIER REIT and CoreSite Realty’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TIER REIT -12.84% -3.59% -1.69%
CoreSite Realty 13.96% 22.25% 4.19%

Insider and Institutional Ownership

76.0% of TIER REIT shares are held by institutional investors. Comparatively, 94.5% of CoreSite Realty shares are held by institutional investors. 1.4% of TIER REIT shares are held by insiders. Comparatively, 1.2% of CoreSite Realty shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

TIER REIT has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, CoreSite Realty has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Summary

CoreSite Realty beats TIER REIT on 11 of the 16 factors compared between the two stocks.

About TIER REIT

TIER REIT, Inc. is a publicly traded (NYSE: TIER), self-managed, Dallas-based real estate investment trust focused on owning quality, well-managed commercial office properties in dynamic markets throughout the U.S. Our vision is to be the premier owner and operator of best-in-class office properties in TIER1 submarkets, which are primarily higher density and amenity-rich locations within select, high-growth metropolitan areas that offer a walkable experience to various amenities. Our mission is to provide unparalleled, TIER ONE Property Services to our tenants and outsized total return through stock price appreciation and dividend growth to our stockholders.

About CoreSite Realty

CoreSite Realty Corporation (NYSE:COR) delivers secure, reliable, high-performance data center and interconnection solutions to a growing customer ecosystem across eight key North American markets. More than 1,350 of the world's leading enterprises, network operators, cloud providers, and supporting service providers choose CoreSite to connect, protect and optimize their performance-sensitive data, applications and computing workloads. Our scalable, flexible solutions and 450+ dedicated employees consistently deliver unmatched data center options — all of which leads to a best-in-class customer experience and lasting relationships.

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