TIER REIT (TIER) versus Piedmont Office Realty Trust (PDM) Financial Analysis
TIER REIT (OTCMKTS: TIER) and Piedmont Office Realty Trust (NYSE:PDM) are both financials companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, dividends, earnings and risk.
This is a breakdown of recent ratings and recommmendations for TIER REIT and Piedmont Office Realty Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Piedmont Office Realty Trust||0||1||0||0||2.00|
TIER REIT currently has a consensus target price of $20.50, indicating a potential upside of 14.59%. Piedmont Office Realty Trust has a consensus target price of $20.50, indicating a potential upside of 2.19%. Given TIER REIT’s stronger consensus rating and higher probable upside, equities analysts clearly believe TIER REIT is more favorable than Piedmont Office Realty Trust.
Valuation & Earnings
This table compares TIER REIT and Piedmont Office Realty Trust’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|TIER REIT||$220.99 million||3.87||$99.25 million||N/A||N/A|
|Piedmont Office Realty Trust||$579.79 million||5.03||$263.29 million||$0.38||52.79|
Piedmont Office Realty Trust has higher revenue and earnings than TIER REIT.
This table compares TIER REIT and Piedmont Office Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Piedmont Office Realty Trust||9.71%||2.67%||1.29%|
Piedmont Office Realty Trust pays an annual dividend of $0.84 per share and has a dividend yield of 4.2%. TIER REIT does not pay a dividend. 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 increased its dividend for 3 consecutive years.
Insider and Institutional Ownership
86.7% of Piedmont Office Realty Trust shares are held by institutional investors. 0.8% of Piedmont Office Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Piedmont Office Realty Trust beats TIER REIT on 8 of the 15 factors compared between the two stocks.
TIER REIT Company Profile
TIER REIT, Inc. is a real estate investment trust. The Company’s business consists of owning, acquiring, developing, operating, investing in, and disposing of real estate assets. The Company’s business is conducted through Tier Operating Partnership LP (Tier OP). As of December 31, 2016, the Company owned interests in 29 operating office properties, one non-operating property and one development property located in 13 markets throughout the United States. It owns properties located in metropolitan cities and suburban markets in the United States. The Company’s office properties include The Terrace Office Park, Domain 3, Domain 4, 5950 Sherry Lane, Burnett Plaza, Loop Central, One BriarLake Plaza, Three Eldridge Place, Eisenhower I, Forum Office Park, 500 E. Pratt, Woodcrest Corporate Center and 111 Woodcrest. The Company’s properties are located in Austin, Dallas, Houston, Charlotte, Nashville, Atlanta and Denver.
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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