Reviewing Terreno Realty (NYSE:TRNO) & FrontView REIT (NYSE:FVR)

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Terreno Realty and FrontView REIT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Terreno Realty	1	2	8	1	2.75
FrontView REIT	2	3	4	2	2.55

Terreno Realty presently has a consensus price target of $69.64, suggesting a potential upside of 3.62%. FrontView REIT has a consensus price target of $18.28, suggesting a potential downside of 7.85%. Given Terreno Realty’s stronger consensus rating and higher possible upside, research analysts clearly believe Terreno Realty is more favorable than FrontView REIT.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Terreno Realty	86.44%	10.35%	7.98%
FrontView REIT	-3.88%	-0.53%	-0.31%

Earnings and Valuation

This table compares Terreno Realty and FrontView REIT”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Terreno Realty	$476.38 million	15.00	$402.99 million	$4.09	16.43
FrontView REIT	$67.11 million	6.69	-$3.83 million	($0.16)	-123.97

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

Volatility and Risk

Terreno Realty has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, FrontView REIT has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.

Dividends

Terreno Realty pays an annual dividend of $2.08 per share and has a dividend yield of 3.1%. FrontView REIT pays an annual dividend of $0.86 per share and has a dividend yield of 4.3%. Terreno Realty pays out 50.9% of its earnings in the form of a dividend. FrontView REIT pays out -537.5% 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. Terreno Realty has raised its dividend for 5 consecutive years. FrontView REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Terreno Realty beats FrontView REIT on 12 of the 16 factors compared between the two stocks.

About Terreno Realty

Terreno Realty Corporation (Terreno, and together with its subsidiaries, the Company) acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. All square feet, acres, occupancy and number of properties disclosed in these notes to the consolidated financial statements are unaudited. As of December 31, 2023, the Company owned 259 buildings aggregating approximately 16.0 million square feet, 45 improved land parcels consisting of approximately 152.4 acres, seven properties under development or redevelopment and approximately 62.7 acres of land entitled for future development. The Company is an internally managed Maryland corporation and elected to be taxed as a real estate investment trust (REIT) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the Code), commencing with its taxable year ended December 31, 2010.

About FrontView REIT

FrontView REIT specializes in real estate investing.