Office Properties Income Trust (NASDAQ:OPI – Get Free Report) and Piedmont Realty Trust (NYSE:PDM – Get Free Report) are both small-cap real estate companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.
Profitability
This table compares Office Properties Income Trust and Piedmont Realty Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Office Properties Income Trust | N/A | N/A | N/A |
| Piedmont Realty Trust | -14.18% | -5.39% | -2.00% |
Valuation and Earnings
This table compares Office Properties Income Trust and Piedmont Realty Trust”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Office Properties Income Trust | N/A | N/A | N/A | N/A | N/A |
| Piedmont Realty Trust | $564.99 million | 2.19 | -$83.62 million | ($0.65) | -15.22 |
Office Properties Income Trust has higher earnings, but lower revenue than Piedmont Realty Trust.
Institutional and Insider Ownership
64.4% of Office Properties Income Trust shares are owned by institutional investors. Comparatively, 84.5% of Piedmont Realty Trust shares are owned by institutional investors. 1.8% of Office Properties Income Trust shares are owned by company insiders. Comparatively, 1.2% of Piedmont Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Office Properties Income Trust and Piedmont Realty Trust, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Office Properties Income Trust | 1 | 0 | 0 | 1 | 2.50 |
| Piedmont Realty Trust | 1 | 1 | 1 | 0 | 2.00 |
Office Properties Income Trust presently has a consensus price target of $27.00, suggesting a potential upside of 55.17%. Piedmont Realty Trust has a consensus price target of $10.50, suggesting a potential upside of 6.17%. Given Office Properties Income Trust’s stronger consensus rating and higher probable upside, research analysts clearly believe Office Properties Income Trust is more favorable than Piedmont Realty Trust.
Summary
Office Properties Income Trust beats Piedmont Realty Trust on 7 of the 10 factors compared between the two stocks.
About Office Properties Income Trust
Office Properties Income Trust is a real estate investment trust. It owns, operates, and leases office buildings to single tenants and multi-tenant buildings. The company was founded on February 17, 2009 and is headquartered in Newton, MA.
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.
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