Head-To-Head Analysis: SITE Centers (NYSE:SITC) & Orion Office REIT (NYSE:ONL)

SITE Centers (NYSE:SITC) and Orion Office REIT (NYSE:ONL) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.

Dividends

SITE Centers pays an annual dividend of $0.52 per share and has a dividend yield of 4.1%. Orion Office REIT pays an annual dividend of $0.08 per share and has a dividend yield of 3.4%. SITE Centers pays out 5.3% of its earnings in the form of a dividend. Orion Office REIT pays out -4.3% 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.

Risk and Volatility

SITE Centers has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500. Comparatively, Orion Office REIT has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SITE Centers	0	7	2	0	2.22
Orion Office REIT	0	1	0	0	2.00

SITE Centers presently has a consensus target price of $35.61, suggesting a potential upside of 181.15%. Given SITE Centers’ stronger consensus rating and higher possible upside, equities analysts plainly believe SITE Centers is more favorable than Orion Office REIT.

Valuation & Earnings

This table compares SITE Centers and Orion Office REIT”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SITE Centers	$277.47 million	2.39	$265.70 million	$9.74	1.30
Orion Office REIT	$164.86 million	0.80	-$57.30 million	($1.84)	-1.28

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

Insider and Institutional Ownership

88.7% of SITE Centers shares are owned by institutional investors. Comparatively, 79.9% of Orion Office REIT shares are owned by institutional investors. 10.1% of SITE Centers shares are owned by company insiders. Comparatively, 0.2% of Orion Office REIT shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares SITE Centers and Orion Office REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SITE Centers	164.10%	34.20%	19.41%
Orion Office REIT	-50.76%	-10.28%	-6.26%

Summary

SITE Centers beats Orion Office REIT on 15 of the 16 factors compared between the two stocks.

About SITE Centers

SITE Centers is an owner and manager of open-air shopping centers located in suburban, high household income communities. The Company is a self-administered and self-managed REIT operating as a fully integrated real estate company, and is publicly traded on the New York Stock Exchange under the ticker symbol SITC.

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.