Highwoods Properties (NYSE: HIW) is one of 20 publicly-traded companies in the “Office REITs” industry, but how does it contrast to its peers? We will compare Highwoods Properties to related businesses based on the strength of its earnings, analyst recommendations, valuation, risk, profitability, institutional ownership and dividends.

Dividends

Highwoods Properties pays an annual dividend of $1.76 per share and has a dividend yield of 3.3%. Highwoods Properties pays out 141.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.

Profitability

This table compares Highwoods Properties and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Highwoods Properties 18.79% 5.96% 2.82%
Highwoods Properties Competitors 5.41% 1.37% 0.69%

Insider and Institutional Ownership

98.1% of Highwoods Properties shares are held by institutional investors. Comparatively, 85.4% of shares of all “Office REITs” companies are held by institutional investors. 1.9% of Highwoods Properties shares are held by insiders. Comparatively, 2.8% of shares of all “Office REITs” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Highwoods Properties and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Highwoods Properties $683.61 million $366.80 million 42.48
Highwoods Properties Competitors $672.08 million $356.91 million 59.90

Highwoods Properties has higher revenue and earnings than its peers. Highwoods Properties is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of current ratings for Highwoods Properties and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Highwoods Properties 0 2 3 0 2.60
Highwoods Properties Competitors 173 642 624 10 2.33

Highwoods Properties currently has a consensus price target of $55.50, indicating a potential upside of 5.37%. As a group, “Office REITs” companies have a potential upside of 8.12%. Given Highwoods Properties’ peers higher probable upside, analysts clearly believe Highwoods Properties has less favorable growth aspects than its peers.

Risk & Volatility

Highwoods Properties has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Highwoods Properties’ peers have a beta of 0.90, suggesting that their average share price is 10% less volatile than the S&P 500.

Summary

Highwoods Properties beats its peers on 9 of the 15 factors compared.

About Highwoods Properties

Highwoods Properties, Inc. is an office real estate investment trust (REIT). The Company’s primary business is the operation, acquisition and development of office properties. The Company’s segments include Office and Other. The Company owns, develops, acquires, leases and manages properties primarily in the best business districts (BBDs) of Atlanta, Greensboro, Memphis, Nashville, Orlando, Pittsburgh, Raleigh, Richmond and Tampa. The Company conducts its activities through Highwoods Realty Limited Partnership (the Operating Partnership). The Company offers a range of real estate services to its customers. The Company offers services, including asset management, construction management, design and space planning, and renovation and re-positioning. The Company provides its customers with services, such as build-to-suit construction and space modification, including tenant improvements and expansions.

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