Corporate Office Properties Trust (NYSE: OFC) is one of 21 publicly-traded companies in the “Office REITs” industry, but how does it weigh in compared to its peers? We will compare Corporate Office Properties Trust to similar businesses based on the strength of its dividends, earnings, risk, profitability, valuation, institutional ownership and analyst recommendations.

Volatility and Risk

Corporate Office Properties Trust has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Corporate Office Properties Trust’s peers have a beta of 0.85, suggesting that their average stock price is 15% less volatile than the S&P 500.

Profitability

This table compares Corporate Office Properties Trust and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Corporate Office Properties Trust 14.38% 5.89% 2.28%
Corporate Office Properties Trust Competitors 5.38% 1.38% 0.65%

Institutional and Insider Ownership

85.2% of shares of all “Office REITs” companies are owned by institutional investors. 0.6% of Corporate Office Properties Trust shares are owned by company insiders. Comparatively, 3.5% of shares of all “Office REITs” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Corporate Office Properties Trust and its peers gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Corporate Office Properties Trust $574.33 million $11.43 million 46.83
Corporate Office Properties Trust Competitors $783.06 million $146.68 million 26.35

Corporate Office Properties Trust’s peers have higher revenue and earnings than Corporate Office Properties Trust. Corporate Office Properties Trust is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of current recommendations for Corporate Office Properties Trust and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Corporate Office Properties Trust 2 6 1 0 1.89
Corporate Office Properties Trust Competitors 121 520 532 3 2.35

Corporate Office Properties Trust currently has a consensus price target of $34.17, suggesting a potential upside of 5.75%. As a group, “Office REITs” companies have a potential upside of 8.90%. Given Corporate Office Properties Trust’s peers stronger consensus rating and higher possible upside, analysts clearly believe Corporate Office Properties Trust has less favorable growth aspects than its peers.

Dividends

Corporate Office Properties Trust pays an annual dividend of $1.10 per share and has a dividend yield of 3.4%. Corporate Office Properties Trust pays out 159.4% 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 3.2% and pay out 183.5% of their earnings in the form of a dividend. Corporate Office Properties Trust is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Summary

Corporate Office Properties Trust peers beat Corporate Office Properties Trust on 10 of the 15 factors compared.

About Corporate Office Properties Trust

Corporate Office Properties Trust is a fully-integrated and self-managed real estate investment trust (REIT). The Company owns, manages, leases, develops and acquires office and data center properties. The Company’s segments are Defense/IT Locations; Regional Office; operating wholesale data center, and other. As of December 31, 2016, the Company’s properties included 164 operating office properties totaling 17.2 million square feet, including 13 triple-net leased, single-tenant data center properties; 11 office properties under construction or redevelopment; 1,028 acres of land controlled for future development, and a wholesale data center with a critical load of 19.25 megawatts. The Company conducts all of its operations through Corporate Office Properties, L.P. (COPLP) and subsidiaries (collectively, the Operating Partnership). COPLP owns real estate both directly and through subsidiary partnerships and limited liability companies (LLCs).

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