Piedmont Realty Trust (NYSE:PDM – Get Free Report) and Orion Office REIT (NYSE:ONL – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, profitability and earnings.
Institutional & Insider Ownership
84.5% of Piedmont Realty Trust shares are owned by institutional investors. Comparatively, 80.0% of Orion Office REIT shares are owned by institutional investors. 1.2% of Piedmont Realty Trust shares are owned by insiders. Comparatively, 1.6% of Orion Office REIT shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Piedmont Realty Trust and Orion Office REIT”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Piedmont Realty Trust | $564.99 million | 2.09 | -$83.62 million | ($0.70) | -13.51 |
| Orion Office REIT | $147.65 million | 1.12 | -$139.31 million | ($2.56) | -1.14 |
Piedmont Realty Trust has higher revenue and earnings than Orion Office REIT. Piedmont Realty Trust is trading at a lower price-to-earnings ratio than Orion Office REIT, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Piedmont Realty Trust has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500. Comparatively, Orion Office REIT has a beta of 1.57, indicating that its stock price is 57% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and price targets for Piedmont Realty Trust and Orion Office REIT, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Piedmont Realty Trust | 1 | 0 | 1 | 0 | 2.00 |
| Orion Office REIT | 1 | 0 | 1 | 0 | 2.00 |
Piedmont Realty Trust presently has a consensus target price of $11.00, suggesting a potential upside of 16.32%. Orion Office REIT has a consensus target price of $3.50, suggesting a potential upside of 19.86%. Given Orion Office REIT’s higher possible upside, analysts plainly believe Orion Office REIT is more favorable than Piedmont Realty Trust.
Profitability
This table compares Piedmont Realty Trust and Orion Office REIT’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Piedmont Realty Trust | -15.28% | -5.70% | -2.15% |
| Orion Office REIT | -98.36% | -21.88% | -11.79% |
Summary
Piedmont Realty Trust beats Orion Office REIT on 8 of the 12 factors compared between the two stocks.
About Piedmont Realty Trust
Piedmont Office Realty Trust, Inc. (also referred to herein as "Piedmont" or the "Company") (NYSE: PDM) is an owner, manager, developer, redeveloper and operator of high-quality, Class A office properties located primarily in major U.S. Sunbelt markets. The Company is a fully-integrated, self-managed real estate investment trust ("REIT") with local management offices in each of its markets and is investment-grade rated by Standard & Poor's and Moody's. The Company was designated an Energy Star Partner of the Year for 2021, 2022 and 2023, and it was the only office REIT headquartered in the Southeast to receive those designations. Approximately 85% of the Company's square footage is Energy Star certified and nearly 70% is LEED certified. Piedmont is headquartered in Atlanta, GA.
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.
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