Comparing Piedmont Office Realty Trust (PDM) and Its Rivals

Piedmont Office Realty Trust (NYSE: PDM) is one of 20 publicly-traded companies in the “Office REITs” industry, but how does it weigh in compared to its rivals? We will compare Piedmont Office Realty Trust to similar businesses based on the strength of its valuation, profitability, institutional ownership, risk, earnings, analyst recommendations and dividends.

Dividends

Piedmont Office Realty Trust pays an annual dividend of $0.84 per share and has a dividend yield of 4.1%. Piedmont Office Realty Trust pays out 221.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Piedmont Office Realty Trust has raised its dividend for 3 consecutive years. Piedmont Office Realty Trust is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current ratings for Piedmont Office Realty Trust and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Piedmont Office Realty Trust 0 1 1 0 2.50
Piedmont Office Realty Trust Competitors 173 634 610 10 2.32

Piedmont Office Realty Trust presently has a consensus price target of $22.25, indicating a potential upside of 9.28%. As a group, “Office REITs” companies have a potential upside of 9.56%. Given Piedmont Office Realty Trust’s rivals higher possible upside, analysts clearly believe Piedmont Office Realty Trust has less favorable growth aspects than its rivals.

Volatility & Risk

Piedmont Office Realty Trust has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, Piedmont Office Realty Trust’s rivals have a beta of 0.91, meaning that their average stock price is 9% less volatile than the S&P 500.

Institutional & Insider Ownership

82.8% of Piedmont Office Realty Trust shares are held by institutional investors. Comparatively, 85.9% of shares of all “Office REITs” companies are held by institutional investors. 0.8% of Piedmont Office Realty Trust shares are held by company insiders. Comparatively, 3.2% of shares of all “Office REITs” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Piedmont Office Realty Trust and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Piedmont Office Realty Trust 9.71% 2.67% 1.29%
Piedmont Office Realty Trust Competitors 5.41% 1.37% 0.69%

Earnings & Valuation

This table compares Piedmont Office Realty Trust and its rivals revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Piedmont Office Realty Trust $579.79 million $263.29 million 53.58
Piedmont Office Realty Trust Competitors $648.15 million $343.67 million 59.45

Piedmont Office Realty Trust’s rivals have higher revenue and earnings than Piedmont Office Realty Trust. Piedmont Office Realty Trust is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Piedmont Office Realty Trust rivals beat Piedmont Office Realty Trust on 8 of the 15 factors compared.

Piedmont Office Realty Trust Company Profile

Piedmont Office Realty Trust, Inc. is an integrated self-managed real estate investment trust (REIT). The Company’s business consists primarily of owning, managing, operating, leasing, acquiring, developing, investing in, and disposing of office real estate assets. As of December 31, 2016, the Company owned and operated 65 in-service office properties, one redevelopment asset, two development assets and one office building through an unconsolidated joint venture. Its properties are located in areas, including New York, Chicago, Atlanta, Dallas, Boston, Minneapolis and Orlando. Its tenant base includes industries, such as business services, depository institutions, educational services, real estate, legal services and insurance carriers. The Company conducts business primarily through Piedmont Operating Partnership, L.P. (Piedmont OP). It performs the management of its buildings through its subsidiaries, including Piedmont Government Services, LLC and Piedmont Office Management, LLC.

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