Piedmont Office Realty Trust (NYSE: PDM) and Spirit Realty Capital (NYSE:SRC) are both mid-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.
Earnings & Valuation
This table compares Piedmont Office Realty Trust and Spirit Realty Capital’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Piedmont Office Realty Trust||$574.17 million||4.12||$133.56 million||$1.75||10.00|
|Spirit Realty Capital||$668.96 million||5.33||$77.14 million||$0.85||9.35|
Volatility & Risk
Piedmont Office Realty Trust has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, Spirit Realty Capital has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500.
Institutional and Insider Ownership
88.2% of Piedmont Office Realty Trust shares are owned by institutional investors. Comparatively, 92.1% of Spirit Realty Capital shares are owned by institutional investors. 0.9% of Piedmont Office Realty Trust shares are owned by insiders. Comparatively, 0.5% of Spirit Realty Capital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Piedmont Office Realty Trust pays an annual dividend of $0.84 per share and has a dividend yield of 4.8%. Spirit Realty Capital pays an annual dividend of $0.72 per share and has a dividend yield of 9.1%. Piedmont Office Realty Trust pays out 48.0% of its earnings in the form of a dividend. Spirit Realty Capital pays out 84.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Piedmont Office Realty Trust has increased its dividend for 4 consecutive years and Spirit Realty Capital has increased its dividend for 3 consecutive years.
This table compares Piedmont Office Realty Trust and Spirit Realty Capital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Piedmont Office Realty Trust||23.26%||1.16%||0.58%|
|Spirit Realty Capital||11.53%||2.84%||1.27%|
This is a breakdown of recent ratings and target prices for Piedmont Office Realty Trust and Spirit Realty Capital, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Piedmont Office Realty Trust||1||1||1||0||2.00|
|Spirit Realty Capital||0||10||5||0||2.33|
Piedmont Office Realty Trust currently has a consensus price target of $20.67, suggesting a potential upside of 18.10%. Spirit Realty Capital has a consensus price target of $9.35, suggesting a potential upside of 17.66%. Given Piedmont Office Realty Trust’s higher probable upside, research analysts plainly believe Piedmont Office Realty Trust is more favorable than Spirit Realty Capital.
Piedmont Office Realty Trust beats Spirit Realty Capital on 9 of the 17 factors compared between the two stocks.
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 submarkets 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.
About Spirit Realty Capital
Spirit Realty Capital, Inc. (NYSE:SRC) is a premier net lease real estate investment trust (REIT) that primarily invests in high-quality, operationally essential retail real estate, subject to long-term, net leases. Over the past decade, Spirit has become an industry leader and owner of income-producing, strategically located retail, industrial and office properties providing superior risk adjusted returns and steady dividend growth for our shareholders.
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