PS Business Parks (NYSE: PSB) and Excel Trust (NYSE:EXL) are both financials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, valuation, profitability, analyst recommendations, dividends, earnings and institutional ownership.

Institutional & Insider Ownership

72.4% of PS Business Parks shares are owned by institutional investors. 1.6% of PS Business Parks shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares PS Business Parks and Excel Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
PS Business Parks $394.93 million 9.31 $261.16 million $3.06 44.13
Excel Trust N/A N/A N/A N/A N/A

PS Business Parks has higher revenue and earnings than Excel Trust.

Profitability

This table compares PS Business Parks and Excel Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PS Business Parks 44.21% 13.43% 8.87%
Excel Trust 9.45% 0.65% 0.88%

Dividends

PS Business Parks pays an annual dividend of $3.40 per share and has a dividend yield of 2.5%. Excel Trust does not pay a dividend. PS Business Parks pays out 111.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PS Business Parks has raised its dividend for 3 consecutive years and Excel Trust has raised its dividend for 7 consecutive years.

Analyst Recommendations

This is a summary of current ratings and price targets for PS Business Parks and Excel Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PS Business Parks 1 1 0 0 1.50
Excel Trust 0 0 0 0 N/A

PS Business Parks presently has a consensus price target of $107.00, indicating a potential downside of 20.77%. Given PS Business Parks’ higher probable upside, research analysts clearly believe PS Business Parks is more favorable than Excel Trust.

Summary

PS Business Parks beats Excel Trust on 8 of the 10 factors compared between the two stocks.

PS Business Parks Company Profile

PS Business Parks, Inc. is a self-advised and self-managed real estate investment trust (REIT). The Company owns, operates and develops commercial properties, primarily multi-tenant flex, office and industrial parks. It focuses on owning concentrated business parks. PS Business Parks, L.P. (the Operating Partnership) is a California limited partnership, which owns directly or indirectly substantially all of its assets and through, which the Company conducts substantially all of its business. PSB is the partner of the Operating Partnership and, as of December 31, 2016, owned 77.9% of the common partnership units. The remaining common partnership units are owned by Public Storage (PS). As of December 31, 2016, the Company owned and operated 28.1 million rentable square feet of commercial space, comprising 99 business parks, in the states, including California, Texas, Virginia, Florida, Maryland and Washington. It also manages 684,000 rentable square feet on behalf of PS.

Excel Trust Company Profile

Excel Trust, Inc. is a real estate investment trust (REIT). The Company is a vertically integrated, self-administered, self-managed real estate firm with the principal objective of acquiring, financing, developing, leasing, owning and managing community and power centers, grocery anchored neighborhood centers and freestanding retail properties. It operates through three segments: retail properties, multi-family properties and office properties. It owns approximately 38 consolidated retail operating properties with a total of approximately 7.2 million square feet of gross leasable area (GLA). The multi-family segment consists of apartment units at one retail property, West Broad Village, which is located in Richmond, Virginia. The office segment consists of two properties, Excel Centre, a portion of which is utilized as its headquarters, and the Promenade Corporate Center. These office properties total approximately 338,339 square feet of GLA.

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