Kilroy Realty Corporation (NYSE: KRC) and Washington Real Estate Investment Trust (NYSE:WRE) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Dividends

Kilroy Realty Corporation pays an annual dividend of $1.70 per share and has a dividend yield of 2.5%. Washington Real Estate Investment Trust pays an annual dividend of $1.20 per share and has a dividend yield of 3.6%. Kilroy Realty Corporation pays out 122.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Washington Real Estate Investment Trust pays out 90.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Washington Real Estate Investment Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Kilroy Realty Corporation and Washington Real Estate Investment Trust’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Kilroy Realty Corporation $691.90 million 9.84 $400.80 million $1.39 49.81
Washington Real Estate Investment Trust $317.68 million 7.98 $182.98 million $1.33 24.77

Kilroy Realty Corporation has higher revenue and earnings than Washington Real Estate Investment Trust. Washington Real Estate Investment Trust is trading at a lower price-to-earnings ratio than Kilroy Realty Corporation, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Kilroy Realty Corporation has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, Washington Real Estate Investment Trust has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Kilroy Realty Corporation and Washington Real Estate Investment Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kilroy Realty Corporation 0 4 4 0 2.50
Washington Real Estate Investment Trust 0 2 3 0 2.60

Kilroy Realty Corporation currently has a consensus price target of $79.00, indicating a potential upside of 14.11%. Washington Real Estate Investment Trust has a consensus price target of $34.10, indicating a potential upside of 3.52%. Given Kilroy Realty Corporation’s higher possible upside, equities research analysts clearly believe Kilroy Realty Corporation is more favorable than Washington Real Estate Investment Trust.

Profitability

This table compares Kilroy Realty Corporation and Washington Real Estate Investment Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kilroy Realty Corporation 21.75% 4.11% 2.24%
Washington Real Estate Investment Trust 31.36% 9.34% 4.36%

Institutional & Insider Ownership

99.7% of Kilroy Realty Corporation shares are held by institutional investors. Comparatively, 85.0% of Washington Real Estate Investment Trust shares are held by institutional investors. 2.3% of Kilroy Realty Corporation shares are held by company insiders. Comparatively, 0.6% of Washington Real Estate Investment Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Kilroy Realty Corporation beats Washington Real Estate Investment Trust on 9 of the 16 factors compared between the two stocks.

Kilroy Realty Corporation Company Profile

Kilroy Realty Corporation is a real estate investment trust (REIT). The Company operates through the office properties segment. It operates in office and mixed-use submarkets along the West Coast. It owns, develops, acquires and manages real estate assets, consisting primarily of Class A properties in the coastal regions of Los Angeles, Orange County, San Diego County, the San Francisco Bay Area and Greater Seattle. It owns its interests in all of its real estate assets through Kilroy Realty, L.P. (Operating Partnership) and the Kilroy Realty Finance Partnership, L.P. (Finance Partnership). Its stabilized portfolio includes all of its properties with the exception of development and redevelopment properties under construction or committed for construction, lease-up properties, real estate assets held for sale and undeveloped land. As of December 31, 2016, its stabilized portfolio of operating properties included 108 stabilized office properties and a stabilized residential property.

Washington Real Estate Investment Trust Company Profile

Washington Real Estate Investment Trust is a self-administered equity real estate investment trust. The Company’s business consists of the ownership and operation of real property in the greater Washington metro region. The Company owns a diversified portfolio of office buildings, multifamily buildings and retail centers. The Company’s segments include office, multifamily and retail. The Company’s office properties provide office space for various types of businesses and professions. The Company’s multifamily properties provide rental housing for individuals and families throughout the Washington metro region. Its retail properties are typically grocery store anchored neighborhood centers that include other small shop tenants or regional power centers with various junior box tenants. As of April 4, 2017, it owned a diversified portfolio of 50 properties, totaling approximately 6.0 million square feet of commercial space and 4,480 residential units, and land held for development.

Receive News & Ratings for Kilroy Realty Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kilroy Realty Corporation and related companies with Analyst Ratings Network's FREE daily email newsletter.