Kilroy Realty Corporation (NYSE: KRC) and Liberty Property Trust (NYSE:LPT) are both mid-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Kilroy Realty Corporation and Liberty Property Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kilroy Realty Corporation 0 5 4 0 2.44
Liberty Property Trust 1 3 3 0 2.29

Kilroy Realty Corporation currently has a consensus price target of $79.00, indicating a potential upside of 14.51%. Liberty Property Trust has a consensus price target of $42.50, indicating a potential downside of 0.47%. Given Kilroy Realty Corporation’s stronger consensus rating and higher possible upside, research analysts clearly believe Kilroy Realty Corporation is more favorable than Liberty Property Trust.

Valuation and Earnings

This table compares Kilroy Realty Corporation and Liberty Property Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Kilroy Realty Corporation $691.90 million 9.81 $400.80 million $1.39 49.63
Liberty Property Trust $728.41 million 8.64 $406.11 million $2.34 18.25

Liberty Property Trust has higher revenue and earnings than Kilroy Realty Corporation. Liberty Property Trust is trading at a lower price-to-earnings ratio than Kilroy Realty Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Kilroy Realty Corporation and Liberty Property Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kilroy Realty Corporation 21.75% 4.11% 2.24%
Liberty Property Trust 47.24% 11.37% 5.51%

Institutional & Insider Ownership

99.7% of Kilroy Realty Corporation shares are owned by institutional investors. Comparatively, 91.7% of Liberty Property Trust shares are owned by institutional investors. 2.3% of Kilroy Realty Corporation shares are owned by company insiders. Comparatively, 1.5% of Liberty Property Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Kilroy Realty Corporation pays an annual dividend of $1.70 per share and has a dividend yield of 2.5%. Liberty Property Trust pays an annual dividend of $1.60 per share and has a dividend yield of 3.7%. Kilroy Realty Corporation pays out 122.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Liberty Property Trust pays out 68.4% of its earnings in the form of a dividend. Kilroy Realty Corporation has raised its dividend for 2 consecutive years. Liberty Property Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Kilroy Realty Corporation has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, Liberty Property Trust has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Summary

Liberty Property Trust beats Kilroy Realty Corporation on 9 of the 17 factors compared between the two stocks.

Kilroy Realty Corporation Company Profile

Kilroy Realty Corporation is a real estate investment trust (REIT). The Company operates through the office properties segment. It operates in office and mixed-use submarkets along the West Coast. It owns, develops, acquires and manages real estate assets, consisting primarily of Class A properties in the coastal regions of Los Angeles, Orange County, San Diego County, the San Francisco Bay Area and Greater Seattle. It owns its interests in all of its real estate assets through Kilroy Realty, L.P. (Operating Partnership) and the Kilroy Realty Finance Partnership, L.P. (Finance Partnership). Its stabilized portfolio includes all of its properties with the exception of development and redevelopment properties under construction or committed for construction, lease-up properties, real estate assets held for sale and undeveloped land. As of December 31, 2016, its stabilized portfolio of operating properties included 108 stabilized office properties and a stabilized residential property.

Liberty Property Trust Company Profile

Liberty Property Trust (the Trust) is a self-administered and self-managed Maryland real estate investment trust (REIT). The Trust’s assets are owned directly or indirectly, and substantially all of the Trust’s operations are conducted directly or indirectly, by its subsidiary, Liberty Property Limited Partnership (the Operating Partnership). The Company’s segments include Carolinas/Richmond; Chicago/Milwaukee; Florida; Houston; Lehigh/Central PA; Minnesota; Philadelphia; Southeastern PA; United Kingdom, and Other, which includes Arizona; Atlanta; Cincinnati/Columbus/Indianapolis; Dallas; DC Metro; New Jersey; Southern California, and other. The Company owns and operates industrial properties nationally and owns and operates office properties in a focused group of office markets. Additionally, the Company owns certain assets in the United Kingdom. As of December 31, 2016, the Company owned and operated 450 industrial and 55 office properties totaling 86.0 million square feet.

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