- Posted at 9:22, November 14, 2013
- By Russ Bleemer
In preaching to Wall Street watchers and individual investors to keep their eyes on corporate capitalization rates when stock picking, the Online Investor, a website, picked on real estate giant SL Green Realty Corp. yesterday.
In a good way.
The site noted that SL Green, a Russell 3000 that trades on the New York Stock Exchange, had a larger market capitalization than the smaller end of the S&P 500.
The site frequently compares stocks. Here, the company compared the New York-based real estate investment and management REIT to supermarket chain Safeway Inc., an S&P 500 Index stock.
The analysis pointed out that SL Green’s market cap is $8.41 billion, while Safeway’s stands at $8.37B.
The site noted that market cap comparison show company’s true value, over stock prices. It describes how mutual funds different emphasis may exclude one or the either funds, but they might converge in others, pointing to a Vanguard mid-cap exchange traded fund that included both SL Green and Safeway for a total of 1.3% of the fund’s value.
Still, the market currently likes supermarkets better than real estate. A three-month price comparison chart saw Safeway price increases, ranging from about 10% to more than 40%. SL Green has been comparatively quieter in the same period, ranging up to about a 5% gain over the Aug. 15 starting point.
The analysis reports that both stocks closed up about .6% yesterday.
CNBC stock guru James Cramer liked The Online Investor’s analysis: his site, TheStreet.com, ran it late yesterday.