Brandywine Realty Trust (NYSE: BDN) and Parkway Properties (NYSE:PKY) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitabiliy, analyst recommendations, valuation and dividends.

Valuation & Earnings

This table compares Brandywine Realty Trust and Parkway Properties’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Brandywine Realty Trust $508.52 million 6.05 $217.51 million $0.04 441.25
Parkway Properties $213.81 million 4.81 $77.41 million N/A N/A

Brandywine Realty Trust has higher revenue and earnings than Parkway Properties.

Dividends

Brandywine Realty Trust pays an annual dividend of $0.64 per share and has a dividend yield of 3.6%. Parkway Properties pays an annual dividend of $0.40 per share and has a dividend yield of 1.9%. Brandywine Realty Trust pays out 1,600.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Parkway Properties has increased its dividend for 2 consecutive years.

Profitability

This table compares Brandywine Realty Trust and Parkway Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brandywine Realty Trust 2.96% 0.81% 0.37%
Parkway Properties N/A -2.94% -1.49%

Insider & Institutional Ownership

99.8% of Brandywine Realty Trust shares are held by institutional investors. Comparatively, 99.8% of Parkway Properties shares are held by institutional investors. 1.8% of Brandywine Realty Trust shares are held by company insiders. Comparatively, 7.9% of Parkway Properties shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Brandywine Realty Trust has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, Parkway Properties has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Brandywine Realty Trust and Parkway Properties, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brandywine Realty Trust 2 4 3 0 2.11
Parkway Properties 0 6 2 0 2.25

Brandywine Realty Trust currently has a consensus price target of $16.57, indicating a potential downside of 6.11%. Parkway Properties has a consensus price target of $20.83, indicating a potential upside of 1.33%. Given Parkway Properties’ stronger consensus rating and higher probable upside, analysts plainly believe Parkway Properties is more favorable than Brandywine Realty Trust.

Summary

Brandywine Realty Trust beats Parkway Properties on 9 of the 15 factors compared between the two stocks.

Brandywine Realty Trust Company Profile

Brandywine Realty Trust is a self-administered and self-managed real estate investment trust (REIT). The Company operates through five segments: Pennsylvania Suburbs, Philadelphia Central Business District (CBD), Metropolitan Washington, D.C., Austin, Texas, and Other. The Pennsylvania Suburbs segment includes properties in Chester, Delaware and Montgomery counties in the Philadelphia suburbs. The Philadelphia CBD segment includes properties located in the City of Philadelphia in Pennsylvania. The Metropolitan Washington, D.C. segment includes properties in the District of Columbia, Northern Virginia and Southern Maryland. The Austin, Texas segment includes properties in the City of Austin, Texas. The Other segment includes properties in Burlington and Camden counties in New Jersey, New Castle County in the state of Delaware and the City of Concord in California. As of December 31, 2016, the Company owned 113 properties that had approximately 17.6 million net rentable square feet.

Parkway Properties Company Profile

Parkway, Inc. is a self-managed real estate investment trust (REIT). The Company owns and operates office properties located in submarkets in Houston, Texas. As of December 31, 2016, the Company’s portfolio consisted of five Class A assets comprising 19 buildings and totaling approximately 8.7 million rentable square feet in the Greenway, Galleria and Westchase submarkets of Houston. In addition, the Company operates a fee-based real estate service (the Third-Party Services Business) through a subsidiary, Eola Office Partners, LLC and its subsidiaries (collectively, Eola), which in total managed approximately 3.8 million square feet (unaudited) for primarily third-party owners, as of December 31, 2016. The Company’s properties include CityWestPlace, San Felipe Plaza, Phoenix Tower, Greenway Plaza and Post Oak Central.

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