Columbia Property Trust (NYSE: CXP) and Easterly Government Properties (NYSE:DEA) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Profitability

This table compares Columbia Property Trust and Easterly Government Properties’ 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%
Easterly Government Properties 3.40% 0.58% 0.36%

Risk & Volatility

Columbia Property Trust has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Easterly Government Properties has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Columbia Property Trust and Easterly Government Properties, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Columbia Property Trust 0 3 4 0 2.57
Easterly Government Properties 0 1 2 0 2.67

Columbia Property Trust presently has a consensus price target of $23.80, suggesting a potential upside of 12.16%. Easterly Government Properties has a consensus price target of $21.83, suggesting a potential upside of 9.44%. Given Columbia Property Trust’s higher possible upside, analysts plainly believe Columbia Property Trust is more favorable than Easterly Government Properties.

Dividends

Columbia Property Trust pays an annual dividend of $0.80 per share and has a dividend yield of 3.8%. Easterly Government Properties pays an annual dividend of $1.00 per share and has a dividend yield of 5.0%. Columbia Property Trust pays out 70.2% of its earnings in the form of a dividend. Easterly Government Properties pays out 1,000.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

64.8% of Columbia Property Trust shares are held by institutional investors. Comparatively, 96.2% of Easterly Government Properties shares are held by institutional investors. 0.5% of Columbia Property Trust shares are held by company insiders. Comparatively, 18.1% of Easterly Government Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Columbia Property Trust and Easterly Government Properties’ top-line 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 6.84 $171.48 million $1.14 18.61
Easterly Government Properties $116.22 million 6.57 $60.40 million $0.10 199.52

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

Summary

Columbia Property Trust beats Easterly Government Properties on 12 of the 16 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.

Easterly Government Properties Company Profile

Easterly Government Properties, Inc. is an internally managed real estate investment trust (REIT). The Company focuses on the acquisition, development and management of Class A commercial properties that are leased to the United States Government agencies. The Company leases its properties to such agencies through the United States General Services Administration (GSA). The operations of the Company are carried on primarily through Easterly Government Properties, LP and the subsidiaries of the Operating Partnership. As of December 31, 2016, it had 43 operating properties in the United States, including 40 operating properties that are leased primarily to the United States Government tenant agencies and three operating properties that are entirely leased to private tenants, encompassing approximately 3.1 million square feet in the aggregate. In addition, the Company had one property under development encompassing approximately 0.1 million square feet as of December 31, 2016.

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