Head-To-Head Comparison: Kilroy Realty (NYSE:KRC) & Orion Office REIT (NYSE:ONL)

Orion Office REIT (NYSE:ONL) and Kilroy Realty (NYSE:KRC) are both real estate companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Volatility & Risk

Orion Office REIT has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500. Comparatively, Kilroy Realty has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Orion Office REIT and Kilroy Realty, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orion Office REIT	1	0	1	0	2.00
Kilroy Realty	2	9	5	0	2.19

Orion Office REIT presently has a consensus target price of $3.50, suggesting a potential upside of 32.63%. Kilroy Realty has a consensus target price of $39.47, suggesting a potential upside of 10.07%. Given Orion Office REIT’s higher possible upside, equities research analysts plainly believe Orion Office REIT is more favorable than Kilroy Realty.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Orion Office REIT	-65.66%	-14.85%	-7.95%
Kilroy Realty	15.47%	3.04%	1.56%

Earnings and Valuation

This table compares Orion Office REIT and Kilroy Realty”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orion Office REIT	$142.92 million	1.05	-$139.31 million	($1.69)	-1.56
Kilroy Realty	$1.09 billion	3.81	$276.12 million	$1.42	25.25

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

Insider & Institutional Ownership

79.9% of Orion Office REIT shares are owned by institutional investors. Comparatively, 94.2% of Kilroy Realty shares are owned by institutional investors. 1.6% of Orion Office REIT shares are owned by insiders. Comparatively, 0.8% of Kilroy Realty shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Orion Office REIT pays an annual dividend of $0.08 per share and has a dividend yield of 3.0%. Kilroy Realty pays an annual dividend of $2.16 per share and has a dividend yield of 6.0%. Orion Office REIT pays out -4.7% of its earnings in the form of a dividend. Kilroy Realty pays out 152.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Kilroy Realty beats Orion Office REIT on 12 of the 16 factors compared between the two stocks.

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.

About Kilroy Realty

Kilroy Realty Corporation (NYSE: KRC, the company, Kilroy) is a leading U.S. landlord and developer, with operations in San Diego, Greater Los Angeles, the San Francisco Bay Area, Greater Seattle and Austin. The company has earned global recognition for sustainability, building operations, innovation and design. As a pioneer and innovator in the creation of a more sustainable real estate industry, the company's approach to modern business environments helps drive creativity and productivity for some of the world's leading technology, entertainment, life science and business services companies. The company is a publicly traded real estate investment trust (REIT) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office, life science and mixed-use projects. As of December 31, 2023, Kilroy's stabilized portfolio totaled approximately 17.0 million square feet of primarily office and life science space that was 85.0% occupied and 86.4% leased. The company also had approximately 1,000 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 92.5%. In addition, the company had two in-process life science redevelopment projects totaling approximately 100,000 square feet with total estimated redevelopment costs of $80.0 million and one approximately 875,000 square foot in-process development project with a total estimated investment of $1.0 billion.