Critical Analysis: Gramercy Property Trust (GPT) & Paramount Group (PGRE)
Paramount Group (NASDAQ: PGRE) and Gramercy Property Trust (NYSE:GPT) are both mid-cap financials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.
This is a summary of recent ratings and recommmendations for Paramount Group and Gramercy Property Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gramercy Property Trust||1||1||3||0||2.40|
Paramount Group currently has a consensus price target of $16.10, indicating a potential upside of 0.00%. Gramercy Property Trust has a consensus price target of $31.67, indicating a potential upside of 2.85%. Given Gramercy Property Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Gramercy Property Trust is more favorable than Paramount Group.
This table compares Paramount Group and Gramercy Property Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Gramercy Property Trust||4.35%||0.81%||0.40%|
Insider and Institutional Ownership
87.1% of Gramercy Property Trust shares are owned by institutional investors. 1.4% of Gramercy 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.
Gramercy Property Trust pays an annual dividend of $1.50 per share and has a dividend yield of 4.9%. Paramount Group does not pay a dividend. Gramercy Property Trust pays out 1,666.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Paramount Group has increased its dividend for 2 consecutive years.
Valuation and Earnings
This table compares Paramount Group and Gramercy Property Trust’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Paramount Group||$708.66 million||5.42||$384.89 million||N/A||N/A|
|Gramercy Property Trust||$525.64 million||9.41||$368.69 million||$0.09||342.15|
Paramount Group has higher revenue and earnings than Gramercy Property Trust.
Paramount Group beats Gramercy Property Trust on 8 of the 14 factors compared between the two stocks.
Paramount Group Company Profile
Paramount Group, Inc. is a fully-integrated real estate investment trust (REIT) focused on owning, operating, managing, acquiring and redeveloping Class A office properties in select central business district submarkets of New York City, Washington, District of Columbia (D.C.) and San Francisco. The Company conducts its business through, and substantially all its interests in properties and investments are held by, Paramount Group Operating Partnership LP (the Operating Partnership). The Company’s segments include New York, Washington, D.C. and San Francisco. As of December 31, 2016, the Company’s portfolio consisted of 13 Class A office properties aggregating approximately 10.8 million square feet that was 93.3% leased and 90.9% occupied. The Company also has an investment management business, where it serves as the general partner and property manager of certain private equity real estate funds for institutional investors and high-net-worth individuals.
Gramercy Property Trust Company Profile
Gramercy Property Trust is a real estate investment trust (REIT), which is an investor and asset manager of commercial real estate. The Company’s operating segments include Investments/Corporate and Asset Management. The Investments/Corporate segment includes all of its activities related to the investment and ownership of commercial properties located throughout the United States and Europe. The Asset Management segment includes substantially all of its activities related to asset and property management of commercial properties located throughout the United States and Europe. It is engaged in acquiring and managing single-tenant, net leased industrial, office and specialty properties. It focuses on income producing properties leased to tenants in markets in the United States and Europe. It earns revenues through rental revenues on properties that it owns in the United States and asset management revenues on properties owned by third parties in the United States and Europe.
Receive News & Ratings for Paramount Group Inc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Paramount Group Inc and related companies with Analyst Ratings Network's FREE daily email newsletter.