Brookfield Canada Office Properties (NYSE: BOXC) and Whitestone REIT (NYSE:WSR) are both small-cap financials companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.

Volatility & Risk

Brookfield Canada Office Properties has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, Whitestone REIT has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.

Insider & Institutional Ownership

20.1% of Brookfield Canada Office Properties shares are owned by institutional investors. Comparatively, 50.0% of Whitestone REIT shares are owned by institutional investors. 5.3% of Whitestone REIT shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Brookfield Canada Office Properties pays an annual dividend of $0.97 per share. Whitestone REIT pays an annual dividend of $1.14 per share and has a dividend yield of 7.9%. 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. Whitestone REIT pays out 633.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a summary of recent recommendations for Brookfield Canada Office Properties and Whitestone REIT, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brookfield Canada Office Properties 0 1 0 0 2.00
Whitestone REIT 1 1 2 0 2.25

Whitestone REIT has a consensus price target of $14.67, indicating a potential upside of 1.15%.

Profitability

This table compares Brookfield Canada Office Properties and Whitestone REIT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brookfield Canada Office Properties 7.64% 1.26% 0.65%
Whitestone REIT 5.77% 2.22% 0.72%

Earnings & Valuation

This table compares Brookfield Canada Office Properties and Whitestone REIT’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brookfield Canada Office Properties N/A N/A N/A $1.16 N/A
Whitestone REIT $104.44 million 5.34 $7.93 million $0.18 80.56

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

Summary

Whitestone REIT beats Brookfield Canada Office Properties on 8 of the 11 factors compared between the two stocks.

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.

About Whitestone REIT

Whitestone REIT is a real estate investment trust. The Company is engaged in owning and operating commercial properties in culturally diverse markets in various metropolitan areas. The Company’s acquisition targets are located in densely populated, culturally diverse neighborhoods, primarily in and around Austin, Chicago, Dallas-Fort Worth, Houston, Phoenix and San Antonio. As of December 31, 2016, the Company owned or held interests in 69 commercial properties, including 15 properties in Houston, five properties in Dallas-Fort Worth, three properties in San Antonio, four properties in Austin, 27 properties in the Scottsdale and Phoenix, Arizona metropolitan areas, and one property in Buffalo Grove, Illinois, a suburb of Chicago. As of December 31, 2016, the Company’s properties included Heritage Trace Plaza, Headquarters Village, La Mirada, The Marketplace at Central, Mercado at Scottsdale Ranch, Paradise Plaza, Parkside Village North, Pima Norte and Quinlan Crossing.

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