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 companies based on the strength of its valuation, earnings, profitability, dividends, institutional ownership, risk and analyst recommendations.

Valuation and Earnings

This table compares Highwoods Properties and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Highwoods Properties $683.61 million $366.80 million 41.93
Highwoods Properties Competitors $648.15 million $343.67 million 59.07

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.

Volatility & Risk

Highwoods Properties has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Highwoods Properties’ peers have a beta of 0.91, meaning that their average stock price is 9% less volatile than the S&P 500.

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 3.64% 1.09% 0.53%

Dividends

Highwoods Properties pays an annual dividend of $1.76 per share and has a dividend yield of 3.4%. 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 3.4% and pay out 249.2% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent recommendations 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 2 0 2.50
Highwoods Properties Competitors 173 634 612 10 2.32

Highwoods Properties presently has a consensus price target of $54.67, suggesting a potential upside of 5.15%. As a group, “Office REITs” companies have a potential upside of 10.69%. Given Highwoods Properties’ peers higher possible upside, analysts plainly believe Highwoods Properties has less favorable growth aspects than its peers.

Insider and Institutional Ownership

98.1% of Highwoods Properties shares are held by institutional investors. Comparatively, 85.6% 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, large money managers and endowments believe a company is poised for long-term growth.

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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