Government Properties Income Trust (GOV) versus Kilroy Realty Corporation (NYSE:KRC) Critical Survey
Government Properties Income Trust (NYSE: GOV) and Kilroy Realty Corporation (NYSE:KRC) are both financials companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.
Government Properties Income Trust pays an annual dividend of $1.72 per share and has a dividend yield of 9.5%. Kilroy Realty Corporation pays an annual dividend of $1.70 per share and has a dividend yield of 2.5%. Government Properties Income Trust pays out -76.1% of its earnings in the form of a dividend. Kilroy Realty Corporation pays out 122.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Government Properties Income Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility & Risk
Government Properties Income Trust has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, Kilroy Realty Corporation has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.
This is a breakdown of current ratings and target prices for Government Properties Income Trust and Kilroy Realty Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Government Properties Income Trust||3||0||1||0||1.50|
|Kilroy Realty Corporation||0||3||6||0||2.67|
Government Properties Income Trust presently has a consensus price target of $18.13, suggesting a potential downside of 0.03%. Kilroy Realty Corporation has a consensus price target of $79.22, suggesting a potential upside of 15.42%. Given Kilroy Realty Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Kilroy Realty Corporation is more favorable than Government Properties Income Trust.
Institutional & Insider Ownership
99.7% of Kilroy Realty Corporation shares are held by institutional investors. 2.3% of Kilroy Realty Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This table compares Government Properties Income Trust and Kilroy Realty Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Government Properties Income Trust||4.64%||5.16%||0.55%|
|Kilroy Realty Corporation||21.75%||4.11%||2.24%|
Valuation & Earnings
This table compares Government Properties Income Trust and Kilroy Realty Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Government Properties Income Trust||$269.69 million||6.47||$143.68 million||($2.26)||-8.02|
|Kilroy Realty Corporation||$691.90 million||9.76||$400.80 million||$1.39||49.38|
Kilroy Realty Corporation has higher revenue and earnings than Government Properties Income Trust. Government Properties Income Trust is trading at a lower price-to-earnings ratio than Kilroy Realty Corporation, indicating that it is currently the more affordable of the two stocks.
Kilroy Realty Corporation beats Government Properties Income Trust on 11 of the 16 factors compared between the two stocks.
Government Properties Income Trust Company Profile
Government Properties Income Trust is a real estate investment trust (REIT). The Company operates through two segments: ownership of properties that are primarily leased to government tenants and its equity method investment in Select Income REIT (SIR). The Company’s properties are located in areas, including Alabama, Arizona, California, Colorado, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, New Hampshire, New Jersey and New Mexico. As of December 31, 2016, the Company owned 73 properties (95 buildings). As of December 31, 2016, the Company’s properties were located in 31 states and the District of Columbia, and contained approximately 11.4 million rentable square feet.
Kilroy Realty Corporation Company Profile
Kilroy Realty Corporation is a real estate investment trust (REIT). The Company operates through the office properties segment. It operates in office and mixed-use submarkets along the West Coast. It owns, develops, acquires and manages real estate assets, consisting primarily of Class A properties in the coastal regions of Los Angeles, Orange County, San Diego County, the San Francisco Bay Area and Greater Seattle. It owns its interests in all of its real estate assets through Kilroy Realty, L.P. (Operating Partnership) and the Kilroy Realty Finance Partnership, L.P. (Finance Partnership). Its stabilized portfolio includes all of its properties with the exception of development and redevelopment properties under construction or committed for construction, lease-up properties, real estate assets held for sale and undeveloped land. As of December 31, 2016, its stabilized portfolio of operating properties included 108 stabilized office properties and a stabilized residential property.
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