Brandywine Realty Trust (BDN) vs. Piedmont Office Realty Trust (PDM) Critical Contrast

Brandywine Realty Trust (NYSE: BDN) and Piedmont Office Realty Trust (NYSE:PDM) are both mid-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.

Profitability

This table compares Brandywine 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
Brandywine Realty Trust 4.67% 1.48% 0.68%
Piedmont Office Realty Trust 9.71% 2.67% 1.29%

Dividends

Brandywine Realty Trust pays an annual dividend of $0.64 per share and has a dividend yield of 3.6%. Piedmont Office Realty Trust pays an annual dividend of $0.84 per share and has a dividend yield of 4.1%. Brandywine Realty Trust pays out 800.1% 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 pays out 221.1% 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 has raised its dividend for 2 consecutive years and Piedmont Office Realty Trust has raised its dividend for 3 consecutive years. Piedmont Office Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Brandywine Realty Trust and Piedmont Office Realty Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brandywine Realty Trust 1 3 4 0 2.38
Piedmont Office Realty Trust 0 1 1 0 2.50

Brandywine Realty Trust presently has a consensus target price of $17.50, suggesting a potential downside of 2.07%. Piedmont Office Realty Trust has a consensus target price of $22.50, suggesting a potential upside of 10.89%. Given Piedmont Office Realty Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Piedmont Office Realty Trust is more favorable than Brandywine Realty Trust.

Insider and Institutional Ownership

98.4% of Brandywine Realty Trust shares are owned by institutional investors. Comparatively, 82.8% of Piedmont Office Realty Trust shares are owned by institutional investors. 1.8% of Brandywine Realty Trust shares are owned by company insiders. Comparatively, 0.8% of Piedmont Office Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Brandywine Realty Trust has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Piedmont Office Realty Trust has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.

Valuation and Earnings

This table compares Brandywine Realty Trust and Piedmont Office Realty Trust’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Brandywine Realty Trust $512.29 million 6.08 $227.17 million $0.08 223.40
Piedmont Office Realty Trust $579.79 million 5.09 $263.29 million $0.38 53.40

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

Summary

Piedmont Office Realty Trust beats Brandywine Realty Trust on 11 of the 17 factors compared between the two stocks.

Brandywine Realty Trust Company Profile

Brandywine Realty Trust is a self-administered and self-managed real estate investment trust (REIT). The Company operates through five segments: Pennsylvania Suburbs, Philadelphia Central Business District (CBD), Metropolitan Washington, D.C., Austin, Texas, and Other. The Pennsylvania Suburbs segment includes properties in Chester, Delaware and Montgomery counties in the Philadelphia suburbs. The Philadelphia CBD segment includes properties located in the City of Philadelphia in Pennsylvania. The Metropolitan Washington, D.C. segment includes properties in the District of Columbia, Northern Virginia and Southern Maryland. The Austin, Texas segment includes properties in the City of Austin, Texas. The Other segment includes properties in Burlington and Camden counties in New Jersey, New Castle County in the state of Delaware and the City of Concord in California. As of December 31, 2016, the Company owned 113 properties that had approximately 17.6 million net rentable square feet.

Piedmont Office Realty Trust Company Profile

Piedmont Office Realty Trust, Inc. is an integrated self-managed real estate investment trust (REIT). The Company’s business consists primarily of owning, managing, operating, leasing, acquiring, developing, investing in, and disposing of office real estate assets. As of December 31, 2016, the Company owned and operated 65 in-service office properties, one redevelopment asset, two development assets and one office building through an unconsolidated joint venture. Its properties are located in areas, including New York, Chicago, Atlanta, Dallas, Boston, Minneapolis and Orlando. Its tenant base includes industries, such as business services, depository institutions, educational services, real estate, legal services and insurance carriers. The Company conducts business primarily through Piedmont Operating Partnership, L.P. (Piedmont OP). It performs the management of its buildings through its subsidiaries, including Piedmont Government Services, LLC and Piedmont Office Management, LLC.

Receive News & Ratings for Brandywine Realty Trust Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Brandywine Realty Trust and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply