Head-To-Head Review: Piedmont Office Realty Trust (PDM) and Its Peers
Piedmont Office Realty Trust (NYSE: PDM) is one of 20 publicly-traded companies in the “Office REITs” industry, but how does it compare to its peers? We will compare Piedmont Office Realty Trust to related companies based on the strength of its analyst recommendations, valuation, risk, profitability, dividends, institutional ownership and earnings.
This is a breakdown of current ratings and target prices for Piedmont Office Realty Trust and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Piedmont Office Realty Trust||0||1||1||0||2.50|
|Piedmont Office Realty Trust Competitors||173||634||612||10||2.32|
Piedmont Office Realty Trust presently has a consensus price target of $22.25, indicating a potential upside of 10.26%. As a group, “Office REITs” companies have a potential upside of 10.17%. Given Piedmont Office Realty Trust’s stronger consensus rating and higher probable upside, research analysts plainly believe Piedmont Office Realty Trust is more favorable than its peers.
Volatility and 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, Piedmont Office Realty Trust’s peers have a beta of 0.91, suggesting that their average stock price is 9% less volatile than the S&P 500.
Valuation & Earnings
This table compares Piedmont Office Realty Trust and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Piedmont Office Realty Trust||$579.79 million||$263.29 million||53.11|
|Piedmont Office Realty Trust Competitors||$648.15 million||$343.67 million||59.07|
Piedmont Office Realty Trust’s peers have higher revenue and earnings than Piedmont Office Realty Trust. Piedmont Office Realty Trust is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Insider and Institutional Ownership
82.8% of Piedmont Office Realty Trust shares are held by institutional investors. Comparatively, 85.6% of shares of all “Office REITs” companies are held by institutional investors. 0.8% of Piedmont Office Realty Trust shares are held by company insiders. Comparatively, 2.8% of shares of all “Office REITs” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
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 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. As a group, “Office REITs” companies pay a dividend yield of 3.4% and pay out 249.2% of their earnings in the form of a dividend. Piedmont Office Realty Trust has increased its dividend for 3 consecutive years. Piedmont Office Realty Trust is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
This table compares Piedmont Office Realty Trust and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Piedmont Office Realty Trust||9.71%||2.67%||1.29%|
|Piedmont Office Realty Trust Competitors||3.64%||1.09%||0.53%|
Piedmont Office Realty Trust beats its peers on 8 of the 15 factors compared.
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.
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