Contrasting Piedmont Realty Trust (NYSE:PDM) and Cousins Properties (NYSE:CUZ)

Cousins Properties (NYSE:CUZ) and Piedmont Realty Trust (NYSE:PDM) are both real estate companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Earnings and Valuation

This table compares Cousins Properties 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
Cousins Properties	$993.82 million	4.48	$40.50 million	$0.04	676.45
Piedmont Realty Trust	$564.99 million	1.96	-$83.62 million	($0.65)	-13.64

Cousins Properties has higher revenue and earnings than Piedmont Realty Trust. Piedmont Realty Trust is trading at a lower price-to-earnings ratio than Cousins Properties, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Cousins Properties and Piedmont Realty Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cousins Properties	0	2	7	0	2.78
Piedmont Realty Trust	1	2	1	0	2.00

Cousins Properties currently has a consensus target price of $31.50, suggesting a potential upside of 16.42%. Piedmont Realty Trust has a consensus target price of $10.67, suggesting a potential upside of 20.32%. Given Piedmont Realty Trust’s higher possible upside, analysts clearly believe Piedmont Realty Trust is more favorable than Cousins Properties.

Profitability

This table compares Cousins Properties and Piedmont Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cousins Properties	0.62%	0.14%	0.07%
Piedmont Realty Trust	-14.18%	-5.39%	-2.00%

Insider and Institutional Ownership

94.4% of Cousins Properties shares are held by institutional investors. Comparatively, 84.5% of Piedmont Realty Trust shares are held by institutional investors. 1.8% of Cousins Properties shares are held by insiders. Comparatively, 1.2% of Piedmont Realty Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Cousins Properties has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, Piedmont Realty Trust has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500.

Summary

Cousins Properties beats Piedmont Realty Trust on 12 of the 14 factors compared between the two stocks.

About Cousins Properties

Cousins Properties Incorporated ("Cousins") is a fully integrated, self-administered, and self-managed real estate investment trust (REIT). The Company, based in Atlanta and acting through its operating partnership, Cousins Properties LP, primarily invests in Class A office buildings located in high-growth Sun Belt markets. Founded in 1958, Cousins creates shareholder value through its extensive expertise in the development, acquisition, leasing, and management of high-quality real estate assets. The Company has a comprehensive strategy in place based on a simple platform, trophy assets, and opportunistic investments.

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.