Analyzing AmBase (ABCP) and Piedmont Office Realty Trust (PDM)

AmBase (OTCMKTS:ABCP) and Piedmont Office Realty Trust (NYSE:PDM) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.

Dividends

Piedmont Office Realty Trust pays an annual dividend of $0.84 per share and has a dividend yield of 4.7%. AmBase does not pay a dividend. Piedmont Office Realty Trust pays out 48.0% of its earnings in the form of a dividend. Piedmont Office Realty Trust has raised its dividend for 4 consecutive years.

Earnings & Valuation

This table compares AmBase and Piedmont Office Realty Trust’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AmBase N/A N/A -$48.05 million N/A N/A
Piedmont Office Realty Trust $574.17 million 4.03 $133.56 million $1.75 10.30

Piedmont Office Realty Trust has higher revenue and earnings than AmBase.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for AmBase and Piedmont Office Realty Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AmBase 0 0 0 0 N/A
Piedmont Office Realty Trust 1 1 2 0 2.25

Piedmont Office Realty Trust has a consensus target price of $21.25, indicating a potential upside of 17.92%. Given Piedmont Office Realty Trust’s higher probable upside, analysts plainly believe Piedmont Office Realty Trust is more favorable than AmBase.

Profitability

This table compares AmBase and Piedmont Office Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AmBase N/A -14.33% -11.31%
Piedmont Office Realty Trust 30.50% 2.81% 1.41%

Insider and Institutional Ownership

86.6% of Piedmont Office Realty Trust shares are held by institutional investors. 41.4% of AmBase shares are held by insiders. Comparatively, 0.9% of Piedmont Office Realty Trust shares are held 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.

Volatility & Risk

AmBase has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Piedmont Office Realty Trust has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500.

Summary

Piedmont Office Realty Trust beats AmBase on 10 of the 13 factors compared between the two stocks.

About AmBase

AmBase Corporation does not have significant operations. Previously, it invested in a real estate development property in New York, New York; and owned, operated, and managed a commercial office building. AmBase Corporation was incorporated in 1975 and is headquartered in Boca Raton, Florida.

About Piedmont Office Realty Trust

Piedmont Office Realty Trust, Inc. (NYSE: PDM) is an owner, manager, developer, and operator of high-quality, Class A office properties in select sub-markets located primarily within eight major U.S. office markets. Its geographically-diversified, almost $5 billion portfolio is currently comprised of approximately 17 million square feet. The Company is a fully-integrated, self-managed real estate investment trust (REIT) with local management offices in each of its major markets and is investment-grade rated by Standard & Poor's (BBB) and Moody's (Baa2).

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