Financial Comparison: Piedmont Office Realty Trust (PDM) and The Competition
Piedmont Office Realty Trust (NYSE: PDM) is one of 21 public companies in the “Office REITs” industry, but how does it weigh in compared to its competitors? We will compare Piedmont Office Realty Trust to related companies based on the strength of its valuation, institutional ownership, risk, analyst recommendations, profitability, earnings and dividends.
This table compares Piedmont Office Realty Trust and its competitors’ 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||5.62%||1.41%||0.71%|
Insider & Institutional Ownership
82.8% of Piedmont Office Realty Trust shares are held by institutional investors. Comparatively, 85.4% of shares of all “Office REITs” companies are held by institutional investors. 0.8% of Piedmont Office Realty Trust shares are held by insiders. Comparatively, 3.2% of shares of all “Office REITs” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk & Volatility
Piedmont Office Realty Trust has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, Piedmont Office Realty Trust’s competitors have a beta of 0.90, suggesting that their average stock price is 10% less volatile than the S&P 500.
This is a breakdown of current recommendations for Piedmont Office Realty Trust and its competitors, as reported by MarketBeat.
|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||114||518||553||3||2.37|
Piedmont Office Realty Trust currently has a consensus target price of $22.50, suggesting a potential upside of 10.62%. As a group, “Office REITs” companies have a potential upside of 7.28%. Given Piedmont Office Realty Trust’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Piedmont Office Realty Trust is more favorable than its competitors.
Piedmont Office Realty Trust pays an annual dividend of $0.84 per share and has a dividend yield of 4.1%. 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 3.3% and pay out 249.2% of their earnings in the form of a dividend. Piedmont Office Realty Trust has raised its dividend for 3 consecutive years. Piedmont Office Realty Trust is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares Piedmont Office Realty Trust and its competitors top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Piedmont Office Realty Trust||$579.79 million||$263.29 million||53.53|
|Piedmont Office Realty Trust Competitors||$648.15 million||$343.67 million||61.03|
Piedmont Office Realty Trust’s competitors 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 competitors, indicating that it is currently more affordable than other companies in its industry.
Piedmont Office Realty Trust beats its competitors on 8 of the 15 factors compared.
About Piedmont Office Realty Trust
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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