Corporate Office Properties Trust (NYSE: OFC) and Piedmont Office Realty Trust (NYSE:PDM) are both mid-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitabiliy.

Valuation and Earnings

This table compares Corporate Office Properties Trust and Piedmont Office Realty Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Corporate Office Properties Trust $578.09 million 5.59 $290.41 million $0.73 44.49
Piedmont Office Realty Trust $579.67 million 5.17 $263.17 million $0.38 54.16

Corporate Office Properties Trust has higher revenue, but lower earnings than Piedmont Office Realty Trust. Corporate Office Properties Trust is trading at a lower price-to-earnings ratio than Piedmont Office Realty Trust, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

86.7% of Piedmont Office Realty Trust shares are held by institutional investors. 0.6% of Corporate Office Properties Trust shares are held by insiders. Comparatively, 0.8% of Piedmont Office Realty Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Corporate Office Properties Trust pays an annual dividend of $1.10 per share and has a dividend yield of 3.4%. Piedmont Office Realty Trust pays an annual dividend of $0.84 per share and has a dividend yield of 4.1%. Corporate Office Properties Trust pays out 150.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Piedmont Office Realty Trust pays out 221.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Piedmont Office Realty Trust has raised its dividend for 3 consecutive years. Piedmont Office Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of current recommendations for Corporate Office Properties Trust and Piedmont Office Realty Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Corporate Office Properties Trust 2 7 1 0 1.90
Piedmont Office Realty Trust 0 2 0 0 2.00

Corporate Office Properties Trust currently has a consensus price target of $32.75, suggesting a potential upside of 0.83%. Piedmont Office Realty Trust has a consensus price target of $21.75, suggesting a potential upside of 5.69%. Given Piedmont Office Realty Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Piedmont Office Realty Trust is more favorable than Corporate Office Properties Trust.

Volatility & Risk

Corporate Office Properties Trust has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Piedmont Office Realty Trust has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.

Profitability

This table compares Corporate Office Properties Trust and Piedmont Office Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Corporate Office Properties Trust 15.86% 6.55% 2.48%
Piedmont Office Realty Trust 9.71% 2.67% 1.29%

Summary

Corporate Office Properties Trust beats Piedmont Office Realty Trust on 9 of the 17 factors compared between the two stocks.

Corporate Office Properties Trust Company Profile

Corporate Office Properties Trust is a fully-integrated and self-managed real estate investment trust (REIT). The Company owns, manages, leases, develops and acquires office and data center properties. The Company’s segments are Defense/IT Locations; Regional Office; operating wholesale data center, and other. As of December 31, 2016, the Company’s properties included 164 operating office properties totaling 17.2 million square feet, including 13 triple-net leased, single-tenant data center properties; 11 office properties under construction or redevelopment; 1,028 acres of land controlled for future development, and a wholesale data center with a critical load of 19.25 megawatts. The Company conducts all of its operations through Corporate Office Properties, L.P. (COPLP) and subsidiaries (collectively, the Operating Partnership). COPLP owns real estate both directly and through subsidiary partnerships and limited liability companies (LLCs).

Piedmont Office Realty Trust Company Profile

Piedmont Office Realty Trust, Inc. is an integrated self-managed real estate investment trust (REIT). The Company’s business consists primarily of owning, managing, operating, leasing, acquiring, developing, investing in, and disposing of office real estate assets. As of December 31, 2016, the Company owned and operated 65 in-service office properties, one redevelopment asset, two development assets and one office building through an unconsolidated joint venture. Its properties are located in areas, including New York, Chicago, Atlanta, Dallas, Boston, Minneapolis and Orlando. Its tenant base includes industries, such as business services, depository institutions, educational services, real estate, legal services and insurance carriers. The Company conducts business primarily through Piedmont Operating Partnership, L.P. (Piedmont OP). It performs the management of its buildings through its subsidiaries, including Piedmont Government Services, LLC and Piedmont Office Management, LLC.

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