Columbia Property Trust (NYSE: CXP) and Washington Real Estate Investment Trust (NYSE:WRE) are both mid-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, risk, earnings, analyst recommendations, institutional ownership and valuation.
Valuation & Earnings
This table compares Columbia Property Trust and Washington Real Estate Investment Trust’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Columbia Property Trust||$473.54 million||5.65||$84.28 million||$1.68||13.30|
|Washington Real Estate Investment Trust||$313.26 million||7.37||$119.33 million||$0.30||98.07|
Columbia Property Trust pays an annual dividend of $0.80 per share and has a dividend yield of 3.6%. Washington Real Estate Investment Trust pays an annual dividend of $1.20 per share and has a dividend yield of 4.1%. Columbia Property Trust pays out 47.6% of its earnings in the form of a dividend. Washington Real Estate Investment Trust pays out 400.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Columbia Property Trust and Washington Real Estate Investment Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Columbia Property Trust||63.37%||8.10%||4.91%|
|Washington Real Estate Investment Trust||7.10%||2.10%||0.98%|
Institutional & Insider Ownership
67.4% of Columbia Property Trust shares are held by institutional investors. Comparatively, 85.4% of Washington Real Estate Investment Trust shares are held by institutional investors. 0.5% of Columbia Property Trust shares are held by company insiders. Comparatively, 0.6% of Washington Real Estate Investment Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Volatility and Risk
Columbia Property Trust has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, Washington Real Estate Investment Trust has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Columbia Property Trust and Washington Real Estate Investment Trust, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Columbia Property Trust||0||2||5||0||2.71|
|Washington Real Estate Investment Trust||1||1||3||0||2.40|
Columbia Property Trust presently has a consensus target price of $24.33, indicating a potential upside of 8.87%. Washington Real Estate Investment Trust has a consensus target price of $33.88, indicating a potential upside of 15.14%. Given Washington Real Estate Investment Trust’s higher possible upside, analysts plainly believe Washington Real Estate Investment Trust is more favorable than Columbia Property Trust.
Columbia Property Trust beats Washington Real Estate Investment Trust on 9 of the 16 factors compared between the two stocks.
Columbia Property Trust Company Profile
Columbia Property Trust, Inc. operates as a real estate investment trust (REIT), which owns and operates commercial real estate properties. The Company’s primary objective is to generate long-term shareholder returns from a combination of steadily growing cash flows and appreciation in its net asset values, through the acquisition and ownership of office buildings located principally in high-barrier-to-entry markets. The Company’s segments include New York, San Francisco, Atlanta, Washington, D.C., Boston, Los Angeles and all other office markets. The all other office markets segment consists of properties in similar, low-barrier to entry geographic locations, in which the Company does not plan to make further investments. The Company conducts its business primarily through Columbia Property Trust Operating Partnership, L.P. (Columbia Property Trust OP), which acquires, develops, owns, leases and operates real properties directly through subsidiaries or through joint ventures.
Washington Real Estate Investment Trust Company Profile
Washington Real Estate Investment Trust is a self-administered equity real estate investment trust. The Company’s business consists of the ownership and operation of real property in the greater Washington metro region. The Company owns a diversified portfolio of office buildings, multifamily buildings and retail centers. The Company’s segments include office, multifamily and retail. The Company’s office properties provide office space for various types of businesses and professions. The Company’s multifamily properties provide rental housing for individuals and families throughout the Washington metro region. Its retail properties are typically grocery store anchored neighborhood centers that include other small shop tenants or regional power centers with various junior box tenants. As of April 4, 2017, it owned a diversified portfolio of 50 properties, totaling approximately 6.0 million square feet of commercial space and 4,480 residential units, and land held for development.
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