Reviewing Piedmont Office Realty Trust (PDM) and Mack-Cali Realty Corporation (CLI)
Piedmont Office Realty Trust (NYSE: PDM) and Mack-Cali Realty Corporation (NYSE:CLI) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.
Earnings & Valuation
This table compares Piedmont Office Realty Trust and Mack-Cali Realty Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Piedmont Office Realty Trust||$579.79 million||5.03||$263.29 million||$0.38||52.79|
|Mack-Cali Realty Corporation||$641.51 million||3.38||$321.83 million||($0.26)||-92.73|
Mack-Cali Realty Corporation has higher revenue and earnings than Piedmont Office Realty Trust. Mack-Cali Realty Corporation 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 owned by institutional investors. Comparatively, 99.6% of Mack-Cali Realty Corporation shares are owned by institutional investors. 0.8% of Piedmont Office Realty Trust shares are owned by company insiders. Comparatively, 6.8% of Mack-Cali Realty Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Piedmont Office Realty Trust and Mack-Cali Realty Corporation’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%|
|Mack-Cali Realty Corporation||-3.31%||-1.21%||-0.44%|
This is a breakdown of current ratings and price targets for Piedmont Office Realty Trust and Mack-Cali Realty Corporation, 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|
|Mack-Cali Realty Corporation||1||3||2||0||2.17|
Piedmont Office Realty Trust presently has a consensus price target of $20.50, suggesting a potential upside of 2.19%. Mack-Cali Realty Corporation has a consensus price target of $29.80, suggesting a potential upside of 23.60%. Given Mack-Cali Realty Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Mack-Cali Realty Corporation is more favorable than Piedmont Office Realty Trust.
Risk & Volatility
Piedmont Office Realty Trust has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, Mack-Cali Realty Corporation has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.
Piedmont Office Realty Trust pays an annual dividend of $0.84 per share and has a dividend yield of 4.2%. Mack-Cali Realty Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 3.3%. 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. Mack-Cali Realty Corporation pays out -307.7% of its earnings in the form of a dividend. Mack-Cali Realty Corporation has raised its dividend for 3 consecutive years.
Mack-Cali Realty Corporation beats Piedmont Office Realty Trust on 10 of the 16 factors compared between the two stocks.
About Piedmont Office Realty Trust
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.
About Mack-Cali Realty Corporation
Mack-Cali Realty Corporation is a self-administered and self-managed real estate investment trust (REIT). The Company owns and operates a real estate portfolio of Class A office and office/flex properties. It operates in three segments: commercial and other real estate, multi-family real estate and multi-family services. Its commercial and other real estate provides leasing, property management, acquisition, development, construction and tenant-related services for its commercial and other real estate, and multi-family real estate portfolio. Its multi-family services business also provides similar services for third parties. It owned or had interests in approximately 248 properties, consisting of approximately 119 office and approximately 110 flex properties, totaling approximately 26.6 million square feet, leased to approximately 1,600 commercial tenants and approximately 19 multi-family rental properties containing approximately 5,614 residential units, plus developable land.
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