Comparing Easterly Government Properties (NYSE:DEA) and PS Business Parks (NYSE:PSB)

Easterly Government Properties (NYSE:DEAGet Rating) and PS Business Parks (NYSE:PSBGet Rating) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.

Earnings and Valuation

This table compares Easterly Government Properties and PS Business Parks’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Easterly Government Properties $274.86 million 6.61 $30.06 million $0.35 57.49
PS Business Parks $438.70 million 10.43 $448.76 million $14.21 11.66

PS Business Parks has higher revenue and earnings than Easterly Government Properties. PS Business Parks is trading at a lower price-to-earnings ratio than Easterly Government Properties, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Easterly Government Properties and PS Business Parks, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Easterly Government Properties 0 3 1 0 2.25
PS Business Parks 0 2 1 0 2.33

Easterly Government Properties presently has a consensus target price of $24.88, suggesting a potential upside of 23.63%. PS Business Parks has a consensus target price of $172.50, suggesting a potential upside of 4.12%. Given Easterly Government Properties’ higher probable upside, research analysts plainly believe Easterly Government Properties is more favorable than PS Business Parks.

Profitability

This table compares Easterly Government Properties and PS Business Parks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Easterly Government Properties 10.94% 2.20% 1.15%
PS Business Parks 102.29% 40.75% 21.38%

Institutional & Insider Ownership

90.5% of Easterly Government Properties shares are held by institutional investors. Comparatively, 70.7% of PS Business Parks shares are held by institutional investors. 9.0% of Easterly Government Properties shares are held by insiders. Comparatively, 1.6% of PS Business Parks 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.

Volatility and Risk

Easterly Government Properties has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500. Comparatively, PS Business Parks has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.

Dividends

Easterly Government Properties pays an annual dividend of $1.06 per share and has a dividend yield of 5.3%. PS Business Parks pays an annual dividend of $4.20 per share and has a dividend yield of 2.5%. Easterly Government Properties pays out 302.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PS Business Parks pays out 29.6% of its earnings in the form of a dividend. Easterly Government Properties has increased its dividend for 1 consecutive years. Easterly Government Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

PS Business Parks beats Easterly Government Properties on 10 of the 16 factors compared between the two stocks.

About Easterly Government Properties (Get Rating)

Easterly Government Properties, Inc. (NYSE:DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. Easterly's experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased to such agencies either directly or through the U.S. General Services Administration (GSA).

About PS Business Parks (Get Rating)

PS Business Parks, Inc. is a real estate investment trust. engages in the ownership, operation, acquisition, and development of commercial properties, primarily multi-tenant flex, office, and industrial space. Its commercial real estate properties include warehouse and office space. The company was founded in 1986 and is headquartered in Glendale, CA.

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