Washington Real Estate Investment Trust (NYSE: WRE) and Brookfield Canada Office Properties (NYSE:BOXC) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Analyst Ratings

This is a summary of current ratings and price targets for Washington Real Estate Investment Trust and Brookfield Canada Office Properties, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Washington Real Estate Investment Trust 0 2 3 0 2.60
Brookfield Canada Office Properties 0 3 0 0 2.00

Washington Real Estate Investment Trust currently has a consensus target price of $34.10, suggesting a potential upside of 2.34%. Brookfield Canada Office Properties has a consensus target price of $29.50, suggesting a potential upside of 18.19%. Given Brookfield Canada Office Properties’ higher possible upside, analysts clearly believe Brookfield Canada Office Properties is more favorable than Washington Real Estate Investment Trust.

Institutional and Insider Ownership

85.0% of Washington Real Estate Investment Trust shares are held by institutional investors. Comparatively, 20.1% of Brookfield Canada Office Properties shares are held by institutional investors. 0.6% of Washington Real Estate Investment Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Washington Real Estate Investment Trust has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Brookfield Canada Office Properties has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.

Earnings & Valuation

This table compares Washington Real Estate Investment Trust and Brookfield Canada Office Properties’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Washington Real Estate Investment Trust $317.68 million 8.07 $182.98 million $1.33 25.05
Brookfield Canada Office Properties N/A N/A N/A $1.16 21.52

Washington Real Estate Investment Trust has higher revenue and earnings than Brookfield Canada Office Properties. Brookfield Canada Office Properties is trading at a lower price-to-earnings ratio than Washington Real Estate Investment Trust, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Washington Real Estate Investment Trust and Brookfield Canada Office Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Washington Real Estate Investment Trust 31.36% 9.34% 4.36%
Brookfield Canada Office Properties 7.64% 1.26% 0.65%

Dividends

Washington Real Estate Investment Trust pays an annual dividend of $1.20 per share and has a dividend yield of 3.6%. Brookfield Canada Office Properties pays an annual dividend of $0.97 per share and has a dividend yield of 3.9%. Washington Real Estate Investment Trust pays out 90.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brookfield Canada Office Properties pays out 83.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brookfield Canada Office Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Washington Real Estate Investment Trust beats Brookfield Canada Office Properties on 9 of the 13 factors compared between the two stocks.

About Washington Real Estate Investment Trust

Washington Real Estate Investment Trust is a self-administered equity real estate investment trust. The Company’s business consists of the ownership and operation of real property in the greater Washington metro region. The Company owns a diversified portfolio of office buildings, multifamily buildings and retail centers. The Company’s segments include office, multifamily and retail. The Company’s office properties provide office space for various types of businesses and professions. The Company’s multifamily properties provide rental housing for individuals and families throughout the Washington metro region. Its retail properties are typically grocery store anchored neighborhood centers that include other small shop tenants or regional power centers with various junior box tenants. As of April 4, 2017, it owned a diversified portfolio of 50 properties, totaling approximately 6.0 million square feet of commercial space and 4,480 residential units, and land held for development.

About Brookfield Canada Office Properties

Brookfield Canada Office Properties is a Canada-based real estate investment trust (REIT). The Company invests, develops and operates commercial office properties in Toronto, Ottawa, Calgary and Vancouver. The Company’s commercial-property portfolio consists of interests in approximately 25 properties totaling approximately 21.1 million square feet, including approximately 4.0 million square feet of parking and other. The Company’s development portfolio consists of the Brookfield Place Calgary East development site totaling approximately 1.4 million square feet in Calgary. The Company also invests in ongoing maintenance and capital improvement projects. The Company focuses on the markets, which include financial, government and energy sectors, which are primarily located in the cities of Toronto and Calgary. Its properties include 2 Queen Street East, Queen’s Quay Terminal, Exchange Tower, Bankers Hall Retail, Suncor Energy Centre, Jean Edmonds Tower and Royal Centre.

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