Paramount Group (NYSE: PGRE) and Brandywine Realty Trust (NYSE:BDN) are both mid-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.
This is a breakdown of recent recommendations and price targets for Paramount Group and Brandywine Realty Trust, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brandywine Realty Trust||1||3||4||0||2.38|
Paramount Group currently has a consensus target price of $15.50, indicating a potential downside of 6.63%. Brandywine Realty Trust has a consensus target price of $17.50, indicating a potential downside of 2.51%. Given Brandywine Realty Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Brandywine Realty Trust is more favorable than Paramount Group.
Valuation & Earnings
This table compares Paramount Group and Brandywine Realty Trust’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Paramount Group||$708.66 million||5.59||$384.89 million||$0.41||40.49|
|Brandywine Realty Trust||$512.29 million||6.11||$227.17 million||$0.08||224.40|
Paramount Group has higher revenue and earnings than Brandywine Realty Trust. Paramount Group is trading at a lower price-to-earnings ratio than Brandywine Realty Trust, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Paramount Group has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Brandywine Realty Trust has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.
Insider and Institutional Ownership
62.3% of Paramount Group shares are held by institutional investors. Comparatively, 98.0% of Brandywine Realty Trust shares are held by institutional investors. 5.7% of Paramount Group shares are held by insiders. Comparatively, 1.8% of Brandywine Realty Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Paramount Group pays an annual dividend of $0.38 per share and has a dividend yield of 2.3%. Brandywine Realty Trust pays an annual dividend of $0.64 per share and has a dividend yield of 3.6%. Paramount Group pays out 92.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brandywine Realty Trust pays out 800.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Paramount Group has increased its dividend for 2 consecutive years.
This table compares Paramount Group and Brandywine Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Brandywine Realty Trust||4.67%||1.48%||0.68%|
Paramount Group beats Brandywine Realty Trust on 10 of the 17 factors compared between the two stocks.
About Paramount Group
Paramount Group, Inc. is a fully-integrated real estate investment trust (REIT) focused on owning, operating, managing, acquiring and redeveloping Class A office properties in select central business district submarkets of New York City, Washington, District of Columbia (D.C.) and San Francisco. The Company conducts its business through, and substantially all its interests in properties and investments are held by, Paramount Group Operating Partnership LP (the Operating Partnership). The Company’s segments include New York, Washington, D.C. and San Francisco. As of December 31, 2016, the Company’s portfolio consisted of 13 Class A office properties aggregating approximately 10.8 million square feet that was 93.3% leased and 90.9% occupied. The Company also has an investment management business, where it serves as the general partner and property manager of certain private equity real estate funds for institutional investors and high-net-worth individuals.
About Brandywine Realty Trust
Brandywine Realty Trust is a self-administered and self-managed real estate investment trust (REIT). The Company operates through five segments: Pennsylvania Suburbs, Philadelphia Central Business District (CBD), Metropolitan Washington, D.C., Austin, Texas, and Other. The Pennsylvania Suburbs segment includes properties in Chester, Delaware and Montgomery counties in the Philadelphia suburbs. The Philadelphia CBD segment includes properties located in the City of Philadelphia in Pennsylvania. The Metropolitan Washington, D.C. segment includes properties in the District of Columbia, Northern Virginia and Southern Maryland. The Austin, Texas segment includes properties in the City of Austin, Texas. The Other segment includes properties in Burlington and Camden counties in New Jersey, New Castle County in the state of Delaware and the City of Concord in California. As of December 31, 2016, the Company owned 113 properties that had approximately 17.6 million net rentable square feet.
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