Comparing Piedmont Office Realty Trust (PDM) and Forest City Realty Trust (FCE.A)
Piedmont Office Realty Trust (NYSE: FCE.A) and Forest City Realty Trust (NYSE:FCE.A) are both mid-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, institutional ownership, profitability, valuation, analyst recommendations, risk and dividends.
Volatility and Risk
Piedmont Office Realty Trust has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, Forest City Realty Trust has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.
This table compares Piedmont Office Realty Trust and Forest City Realty Trust’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Piedmont Office Realty Trust||$574.17 million||4.53||$133.56 million||$1.75||11.59|
|Forest City Realty Trust||$911.90 million||7.34||$206.03 million||N/A||N/A|
Forest City Realty Trust has higher revenue and earnings than Piedmont Office Realty Trust.
This is a breakdown of recent ratings for Piedmont Office Realty Trust and Forest City Realty Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Piedmont Office Realty Trust||1||1||2||0||2.25|
|Forest City Realty Trust||0||0||1||0||3.00|
Piedmont Office Realty Trust currently has a consensus target price of $21.25, suggesting a potential upside of 4.78%. Forest City Realty Trust has a consensus target price of $25.00, suggesting a potential downside of 0.20%. Given Piedmont Office Realty Trust’s higher probable upside, equities analysts clearly believe Piedmont Office Realty Trust is more favorable than Forest City Realty Trust.
This table compares Piedmont Office Realty Trust and Forest City Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Piedmont Office Realty Trust||30.50%||2.81%||1.41%|
|Forest City Realty Trust||40.28%||N/A||N/A|
Insider & Institutional Ownership
87.1% of Piedmont Office Realty Trust shares are held by institutional investors. Comparatively, 87.8% of Forest City Realty Trust shares are held by institutional investors. 0.9% of Piedmont Office Realty Trust shares are held by insiders. Comparatively, 9.2% of Forest City Realty Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Piedmont Office Realty Trust pays an annual dividend of $0.84 per share and has a dividend yield of 4.1%. Forest City Realty Trust pays an annual dividend of $0.72 per share and has a dividend yield of 2.9%. Piedmont Office Realty Trust pays out 48.0% of its earnings in the form of a dividend. Piedmont Office Realty Trust has raised its dividend for 4 consecutive years. Piedmont Office Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Forest City Realty Trust beats Piedmont Office Realty Trust on 10 of the 16 factors compared between the two stocks.
Piedmont Office Realty Trust Company Profile
Piedmont Office Realty Trust, Inc. (NYSE: PDM) is an owner, manager, developer, and operator of high-quality, Class A office properties in select sub-markets located primarily within eight major U.S. office markets. Its geographically-diversified, almost $5 billion portfolio is currently comprised of approximately 17 million square feet. The Company is a fully-integrated, self-managed real estate investment trust (REIT) with local management offices in each of its major markets and is investment-grade rated by Standard & Poor's (BBB) and Moody's (Baa2). For more information, see www.piedmontreit.com.
Forest City Realty Trust Company Profile
Forest City Realty Trust, Inc. is engaged in operation, development, management and acquisition of office, retail and apartment real estate and land throughout the United States. The Company’s segments include Office, Retail, Apartments, Development, Corporate and Other. Its Office segment owns, acquires and operates office and life science buildings. Its Retail segment owns, acquires and operates regional malls, specialty/urban retail centers and amenity retail within its mixed-use projects. Its Apartments segment owns, acquires and operates rental properties, including upscale and middle-market apartments, adaptive reuse developments and subsidized senior housing. Its Development segment represents the development and construction of office and life science buildings, regional malls, specialty/urban retail centers, amenity retail, apartments, condominiums and mixed-use projects.
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