Healthpeak Properties (NYSE:DOC) & Orion Office REIT (NYSE:ONL) Critical Analysis

Healthpeak Properties (NYSE:DOC) and Orion Office REIT (NYSE:ONL) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Risk and Volatility

Healthpeak Properties has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, Orion Office REIT has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500.

Profitability

This table compares Healthpeak Properties and Orion Office REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Healthpeak Properties	2.52%	0.84%	0.36%
Orion Office REIT	-94.35%	-20.13%	-11.12%

Valuation and Earnings

This table compares Healthpeak Properties and Orion Office REIT”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthpeak Properties	$2.82 billion	4.07	$71.35 million	$0.10	165.25
Orion Office REIT	$147.65 million	0.84	-$139.31 million	($2.49)	-0.87

Healthpeak Properties has higher revenue and earnings than Orion Office REIT. Orion Office REIT is trading at a lower price-to-earnings ratio than Healthpeak Properties, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations for Healthpeak Properties and Orion Office REIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthpeak Properties	0	8	6	0	2.43
Orion Office REIT	1	1	1	0	2.00

Healthpeak Properties currently has a consensus price target of $19.27, indicating a potential upside of 16.61%. Orion Office REIT has a consensus price target of $3.00, indicating a potential upside of 37.93%. Given Orion Office REIT’s higher probable upside, analysts clearly believe Orion Office REIT is more favorable than Healthpeak Properties.

Institutional & Insider Ownership

93.6% of Healthpeak Properties shares are held by institutional investors. Comparatively, 80.0% of Orion Office REIT shares are held by institutional investors. 0.2% of Healthpeak Properties shares are held by company insiders. Comparatively, 0.2% of Orion Office REIT shares are held 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

Healthpeak Properties pays an annual dividend of $1.22 per share and has a dividend yield of 7.4%. Orion Office REIT pays an annual dividend of $0.08 per share and has a dividend yield of 3.7%. Healthpeak Properties pays out 1,220.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Orion Office REIT pays out -3.2% of its earnings in the form of a dividend.

Summary

Healthpeak Properties beats Orion Office REIT on 13 of the 16 factors compared between the two stocks.

About Healthpeak Properties

Healthpeak Properties, Inc. is a fully integrated real estate investment trust (REIT) and S&P 500 company. Healthpeak owns, operates, and develops high-quality real estate for healthcare discovery and delivery.

About Orion Office REIT

Orion Office REIT specializes in the ownership, acquisition and management of a diversified portfolio of mission-critical and corporate headquarters office buildings in high-quality suburban markets across the U.S. The portfolio is leased primarily on a single-tenant net lease basis to creditworthy tenants. The company's team of experienced industry leaders employs a proven, cycle-tested investment evaluation framework which serves as the lens through which capital allocation decisions are made for the current portfolio and future acquisitions.