TPG RE Finance Trust (NYSE: BDN) and Brandywine Realty Trust (NYSE:BDN) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.
TPG RE Finance Trust pays an annual dividend of $1.72 per share and has a dividend yield of 8.6%. Brandywine Realty Trust pays an annual dividend of $0.72 per share and has a dividend yield of 4.3%. TPG RE Finance Trust pays out 98.9% 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 55.0% of its earnings in the form of a dividend. Brandywine Realty Trust has raised its dividend for 3 consecutive years.
This table compares TPG RE Finance Trust and Brandywine Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|TPG RE Finance Trust||43.06%||8.10%||2.71%|
|Brandywine Realty Trust||28.08%||8.38%||3.86%|
Earnings and Valuation
This table compares TPG RE Finance Trust and Brandywine Realty Trust’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TPG RE Finance Trust||$200.60 million||6.56||$94.35 million||$1.74||11.45|
|Brandywine Realty Trust||$520.49 million||5.80||$120.85 million||$1.31||12.91|
Brandywine Realty Trust has higher revenue and earnings than TPG RE Finance Trust. TPG RE Finance 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 summary of current ratings and target prices for TPG RE Finance Trust and Brandywine Realty Trust, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|TPG RE Finance Trust||0||1||2||0||2.67|
|Brandywine Realty Trust||0||3||3||0||2.50|
TPG RE Finance Trust presently has a consensus price target of $21.67, indicating a potential upside of 8.71%. Brandywine Realty Trust has a consensus price target of $18.00, indicating a potential upside of 6.45%. Given TPG RE Finance Trust’s stronger consensus rating and higher probable upside, equities research analysts plainly believe TPG RE Finance Trust is more favorable than Brandywine Realty Trust.
Insider and Institutional Ownership
40.7% of TPG RE Finance Trust shares are owned by institutional investors. 0.5% of TPG RE Finance Trust shares are owned by company insiders. Comparatively, 1.8% of Brandywine Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Brandywine Realty Trust beats TPG RE Finance Trust on 9 of the 16 factors compared between the two stocks.
About TPG RE Finance Trust
TPG RE Finance Trust, Inc., a commercial real estate finance company, originates, acquires, and manages commercial mortgage loans and other commercial real estate-related debt instruments in the United States. It invests in commercial mortgage loans; and subordinate mortgage interests, mezzanine loans, secured real estate securities, note financing, preferred equity, and miscellaneous debt instruments secured by properties primarily in the office, mixed use, multifamily, industrial, retail, and hospitality real estate sectors. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. TPG RE Finance Trust, Inc. was incorporated in 2014 and is based in New York, New York.
About Brandywine Realty Trust
Brandywine Realty Trust (NYSE: BDN) is one of the largest, publicly traded, full-service, integrated real estate companies in the United States with a core focus in the Philadelphia, Washington, D.C., and Austin markets. Organized as a real estate investment trust (REIT), we own, develop, lease and manage an urban, town center and transit-oriented portfolio comprising 184 properties and 25.3 million square feet as of June 30, 2018, which excludes assets held for sale. Our purpose is to shape, connect and inspire the world around us through our expertise, the relationships we foster, the communities in which we live and work, and the history we build together. For more information, please visit www.brandywinerealty.com.
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