Columbia Property Trust (NYSE: CXP) and Douglas Emmett (NYSE:DEI) are both mid-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitabiliy, institutional ownership, dividends and valuation.

Valuation and Earnings

This table compares Columbia Property Trust and Douglas Emmett’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Columbia Property Trust $376.05 million 7.00 $171.48 million $1.14 19.05
Douglas Emmett $788.75 million 7.62 $480.14 million $0.59 65.37

Douglas Emmett has higher revenue and earnings than Columbia Property Trust. Columbia Property Trust is trading at a lower price-to-earnings ratio than Douglas Emmett, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Columbia Property Trust has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Douglas Emmett has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500.

Profitability

This table compares Columbia Property Trust and Douglas Emmett’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Columbia Property Trust 37.27% 5.55% 3.30%
Douglas Emmett 12.00% 2.95% 1.18%

Dividends

Columbia Property Trust pays an annual dividend of $0.80 per share and has a dividend yield of 3.7%. Douglas Emmett pays an annual dividend of $0.92 per share and has a dividend yield of 2.4%. Columbia Property Trust pays out 70.2% of its earnings in the form of a dividend. Douglas Emmett pays out 155.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Columbia Property Trust has raised its dividend for 6 consecutive years. Columbia Property Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Columbia Property Trust and Douglas Emmett, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Columbia Property Trust 0 3 4 0 2.57
Douglas Emmett 2 6 1 0 1.89

Columbia Property Trust currently has a consensus target price of $23.80, indicating a potential upside of 9.58%. Douglas Emmett has a consensus target price of $39.71, indicating a potential upside of 2.97%. Given Columbia Property Trust’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Columbia Property Trust is more favorable than Douglas Emmett.

Insider and Institutional Ownership

64.1% of Columbia Property Trust shares are held by institutional investors. Comparatively, 97.4% of Douglas Emmett shares are held by institutional investors. 0.5% of Columbia Property Trust shares are held by insiders. Comparatively, 17.8% of Douglas Emmett shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Columbia Property Trust beats Douglas Emmett on 11 of the 17 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.

Douglas Emmett Company Profile

Douglas Emmett, Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company is owner and operator of office and multifamily properties located in submarkets in Los Angeles and Honolulu. The Company operates through two segments: the acquisition, development, ownership and management of office real estate (Office Segment), and the acquisition, development, ownership and management of multifamily real estate (Multifamily Segment). The services for its Office segment include primarily rental of office space and other tenant services, including parking and storage space rental. The services for its Multifamily segment include primarily rental of apartments and other tenant services, including parking and storage space rental. It focuses on owning, acquiring developing and managing a substantial share of office properties and multifamily communities in neighborhoods.

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