Forest City Realty Trust (NYSE: PDM) and Piedmont Office Realty Trust (NYSE:PDM) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, valuation, earnings, profitability, institutional ownership and dividends.
Valuation and Earnings
This table compares Forest City Realty Trust and Piedmont Office Realty Trust’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Forest City Realty Trust||$911.90 million||7.34||$206.03 million||N/A||N/A|
|Piedmont Office Realty Trust||$574.17 million||4.48||$133.56 million||$1.75||11.45|
Forest City Realty Trust has higher revenue and earnings than Piedmont Office Realty Trust.
Forest City Realty Trust pays an annual dividend of $0.72 per share and has a dividend yield of 2.9%. Piedmont Office Realty Trust pays an annual dividend of $0.84 per share and has a dividend yield of 4.2%. Piedmont Office Realty Trust pays out 48.0% of its earnings in the form of a dividend. Piedmont Office Realty Trust has increased its dividend for 4 consecutive years. Piedmont Office Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk & Volatility
Forest City Realty Trust has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, Piedmont Office Realty Trust has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500.
Insider and Institutional Ownership
87.4% of Forest City Realty Trust shares are held by institutional investors. Comparatively, 86.6% of Piedmont Office Realty Trust shares are held by institutional investors. 9.2% of Forest City Realty Trust shares are held by company insiders. Comparatively, 0.9% of Piedmont Office Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares Forest City Realty Trust and Piedmont Office Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Forest City Realty Trust||40.28%||N/A||N/A|
|Piedmont Office Realty Trust||30.50%||2.81%||1.41%|
This is a breakdown of recent ratings and recommmendations for Forest City Realty Trust and Piedmont Office Realty Trust, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Forest City Realty Trust||0||0||1||0||3.00|
|Piedmont Office Realty Trust||1||1||2||0||2.25|
Forest City Realty Trust currently has a consensus target price of $25.00, indicating a potential downside of 0.24%. Piedmont Office Realty Trust has a consensus target price of $21.25, indicating a potential upside of 6.09%. Given Piedmont Office Realty Trust’s higher possible upside, analysts plainly believe Piedmont Office Realty Trust is more favorable than Forest City Realty Trust.
Forest City Realty Trust beats Piedmont Office Realty Trust on 10 of the 16 factors compared between the two stocks.
Forest City Realty Trust Company Profile
Forest City Realty Trust, Inc. is engaged in operation, development, management and acquisition of office, retail and apartment real estate and land throughout the United States. The Company’s segments include Office, Retail, Apartments, Development, Corporate and Other. Its Office segment owns, acquires and operates office and life science buildings. Its Retail segment owns, acquires and operates regional malls, specialty/urban retail centers and amenity retail within its mixed-use projects. Its Apartments segment owns, acquires and operates rental properties, including upscale and middle-market apartments, adaptive reuse developments and subsidized senior housing. Its Development segment represents the development and construction of office and life science buildings, regional malls, specialty/urban retail centers, amenity retail, apartments, condominiums and mixed-use projects.
Piedmont Office Realty Trust Company Profile
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). For more information, see www.piedmontreit.com.
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