Orion Office REIT (NYSE:ONL – Get Free Report) and Easterly Government Properties (NYSE:DEA – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.
Institutional and Insider Ownership
80.0% of Orion Office REIT shares are owned by institutional investors. Comparatively, 86.5% of Easterly Government Properties shares are owned by institutional investors. 1.6% of Orion Office REIT shares are owned by company insiders. Comparatively, 6.5% of Easterly Government Properties shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Orion Office REIT and Easterly Government Properties”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Orion Office REIT | $147.65 million | 0.96 | -$139.31 million | ($2.49) | -1.01 |
| Easterly Government Properties | $336.10 million | 3.25 | $13.00 million | $0.28 | 84.15 |
Easterly Government Properties has higher revenue and earnings than Orion Office REIT. Orion Office REIT 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.
Profitability
This table compares Orion Office REIT and Easterly Government Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Orion Office REIT | -94.35% | -20.13% | -11.12% |
| Easterly Government Properties | 3.87% | 0.94% | 0.39% |
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Orion Office REIT and Easterly Government Properties, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Orion Office REIT | 1 | 1 | 1 | 0 | 2.00 |
| Easterly Government Properties | 1 | 3 | 1 | 0 | 2.00 |
Orion Office REIT presently has a consensus target price of $3.00, indicating a potential upside of 19.76%. Easterly Government Properties has a consensus target price of $23.49, indicating a potential downside of 0.30%. Given Orion Office REIT’s higher possible upside, analysts plainly believe Orion Office REIT is more favorable than Easterly Government Properties.
Dividends
Orion Office REIT pays an annual dividend of $0.08 per share and has a dividend yield of 3.2%. Easterly Government Properties pays an annual dividend of $1.80 per share and has a dividend yield of 7.6%. Orion Office REIT pays out -3.2% of its earnings in the form of a dividend. Easterly Government Properties pays out 642.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Risk and Volatility
Orion Office REIT has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500. Comparatively, Easterly Government Properties has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.
Summary
Easterly Government Properties beats Orion Office REIT on 11 of the 14 factors compared between the two stocks.
About Orion Office REIT
Orion Office REIT specializes in the ownership, acquisition and management of a diversified portfolio of mission-critical and corporate headquarters office buildings in high-quality suburban markets across the U.S. The portfolio is leased primarily on a single-tenant net lease basis to creditworthy tenants. The company's team of experienced industry leaders employs a proven, cycle-tested investment evaluation framework which serves as the lens through which capital allocation decisions are made for the current portfolio and future acquisitions.
About Easterly Government Properties
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).
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