Piedmont Realty Trust (NYSE:PDM – Get Free Report) and Service Properties Trust (NASDAQ:SVC – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.
Valuation and Earnings
This table compares Piedmont Realty Trust and Service Properties Trust”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Piedmont Realty Trust | $564.99 million | 1.72 | -$83.62 million | ($0.68) | -11.42 |
| Service Properties Trust | $1.81 billion | 0.13 | -$202.32 million | ($1.21) | -1.19 |
Institutional and Insider Ownership
84.5% of Piedmont Realty Trust shares are held by institutional investors. Comparatively, 77.6% of Service Properties Trust shares are held by institutional investors. 1.2% of Piedmont Realty Trust shares are held by company insiders. Comparatively, 1.6% of Service Properties Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Piedmont Realty Trust and Service Properties Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Piedmont Realty Trust | -14.80% | -5.44% | -2.09% |
| Service Properties Trust | -11.15% | -29.70% | -2.96% |
Analyst Recommendations
This is a summary of current ratings for Piedmont Realty Trust and Service Properties Trust, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Piedmont Realty Trust | 1 | 1 | 1 | 0 | 2.00 |
| Service Properties Trust | 1 | 2 | 1 | 0 | 2.00 |
Piedmont Realty Trust presently has a consensus price target of $9.00, indicating a potential upside of 15.92%. Service Properties Trust has a consensus price target of $2.00, indicating a potential upside of 38.89%. Given Service Properties Trust’s higher possible upside, analysts clearly believe Service Properties Trust is more favorable than Piedmont Realty Trust.
Risk & Volatility
Piedmont Realty Trust has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500. Comparatively, Service Properties Trust has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500.
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.
About Service Properties Trust
Service Properties Trust (Nasdaq: SVC) is a real estate investment trust with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of December 31, 2023, SVC owned 221 hotels with over 37,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service. As of December 31, 2023, SVC also owned 752 service-focused retail net lease properties totaling approximately 13.3 million square feet throughout the United States. SVC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $41 billion in assets under management as of December 31, 2023, and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. SVC is headquartered in Newton, MA.
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