Financial Survey: Piedmont Office Realty Trust (PDM) and Brandywine Realty Trust (BDN)
Piedmont Office Realty Trust (NYSE: PDM) and Brandywine Realty Trust (NYSE:BDN) are both mid-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, earnings, analyst recommendations, risk and profitability.
Piedmont Office Realty Trust pays an annual dividend of $0.84 per share and has a dividend yield of 4.2%. Brandywine Realty Trust pays an annual dividend of $0.64 per share and has a dividend yield of 3.7%. 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. Brandywine Realty Trust pays out 800.1% 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 and Brandywine Realty Trust has increased its dividend for 2 consecutive years. Piedmont Office Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings & Valuation
This table compares Piedmont Office Realty Trust and Brandywine Realty Trust’s 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||5.02||$263.29 million||$0.38||52.66|
|Brandywine Realty Trust||$512.29 million||5.88||$227.17 million||$0.08||216.03|
Piedmont Office Realty Trust has higher revenue and earnings than Brandywine Realty Trust. Piedmont Office Realty Trust is trading at a lower price-to-earnings ratio than Brandywine Realty Trust, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for Piedmont Office Realty Trust and Brandywine Realty Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Piedmont Office Realty Trust||0||1||1||0||2.50|
|Brandywine Realty Trust||1||3||4||0||2.38|
Piedmont Office Realty Trust presently has a consensus target price of $22.50, suggesting a potential upside of 12.44%. Brandywine Realty Trust has a consensus target price of $17.50, suggesting a potential upside of 1.27%. Given Piedmont Office Realty Trust’s stronger consensus rating and higher probable upside, research analysts plainly believe Piedmont Office Realty Trust is more favorable than Brandywine Realty Trust.
Institutional & Insider Ownership
82.8% of Piedmont Office Realty Trust shares are held by institutional investors. Comparatively, 98.4% of Brandywine Realty Trust shares are held by institutional investors. 0.8% of Piedmont Office Realty Trust shares are held by company insiders. Comparatively, 1.8% of Brandywine Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk & Volatility
Piedmont Office Realty Trust has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, Brandywine Realty Trust has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.
This table compares Piedmont Office Realty Trust and Brandywine 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%|
|Brandywine Realty Trust||4.67%||1.48%||0.68%|
Piedmont Office Realty Trust beats Brandywine Realty Trust on 11 of the 17 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 Brandywine Realty Trust
Brandywine Realty Trust is a self-administered and self-managed real estate investment trust (REIT). The Company operates through five segments: Pennsylvania Suburbs, Philadelphia Central Business District (CBD), Metropolitan Washington, D.C., Austin, Texas, and Other. The Pennsylvania Suburbs segment includes properties in Chester, Delaware and Montgomery counties in the Philadelphia suburbs. The Philadelphia CBD segment includes properties located in the City of Philadelphia in Pennsylvania. The Metropolitan Washington, D.C. segment includes properties in the District of Columbia, Northern Virginia and Southern Maryland. The Austin, Texas segment includes properties in the City of Austin, Texas. The Other segment includes properties in Burlington and Camden counties in New Jersey, New Castle County in the state of Delaware and the City of Concord in California. As of December 31, 2016, the Company owned 113 properties that had approximately 17.6 million net rentable square feet.
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