Gramercy Property Trust (NYSE: GPT) and Parkway Properties (NYSE:PKY) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitabiliy, earnings, institutional ownership and dividends.
Valuation and Earnings
This table compares Gramercy Property Trust and Parkway Properties’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Gramercy Property Trust | $525.64 million | 8.38 | $368.69 million | $0.09 | 322.37 |
| Parkway Properties | $213.81 million | 5.29 | $77.41 million | N/A | N/A |
Gramercy Property Trust has higher revenue and earnings than Parkway Properties.
Risk & Volatility
Gramercy Property Trust has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, Parkway Properties has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Gramercy Property Trust and Parkway Properties, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gramercy Property Trust | 0 | 2 | 2 | 0 | 2.50 |
| Parkway Properties | 0 | 7 | 1 | 0 | 2.13 |
Gramercy Property Trust currently has a consensus price target of $34.00, suggesting a potential upside of 17.20%. Parkway Properties has a consensus price target of $21.00, suggesting a potential downside of 8.66%. Given Gramercy Property Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Gramercy Property Trust is more favorable than Parkway Properties.
Institutional & Insider Ownership
82.7% of Gramercy Property Trust shares are owned by institutional investors. Comparatively, 96.2% of Parkway Properties shares are owned by institutional investors. 1.0% of Gramercy Property Trust shares are owned by insiders. Comparatively, 7.9% of Parkway Properties shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Gramercy Property Trust and Parkway Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gramercy Property Trust | 4.35% | 0.81% | 0.40% |
| Parkway Properties | N/A | -2.94% | -1.49% |
Dividends
Gramercy Property Trust pays an annual dividend of $1.50 per share and has a dividend yield of 5.2%. Parkway Properties pays an annual dividend of $0.40 per share and has a dividend yield of 1.7%. Gramercy Property Trust pays out 1,666.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Parkway Properties has increased its dividend for 2 consecutive years.
Summary
Gramercy Property Trust beats Parkway Properties on 10 of the 15 factors compared between the two stocks.
Gramercy Property Trust Company Profile
Gramercy Property Trust is a real estate investment trust (REIT), which is an investor and asset manager of commercial real estate. The Company’s operating segments include Investments/Corporate and Asset Management. The Investments/Corporate segment includes all of its activities related to the investment and ownership of commercial properties located throughout the United States and Europe. The Asset Management segment includes substantially all of its activities related to asset and property management of commercial properties located throughout the United States and Europe. It is engaged in acquiring and managing single-tenant, net leased industrial, office and specialty properties. It focuses on income producing properties leased to tenants in markets in the United States and Europe. It earns revenues through rental revenues on properties that it owns in the United States and asset management revenues on properties owned by third parties in the United States and Europe.
Parkway Properties Company Profile
Parkway, Inc. is a self-managed real estate investment trust (REIT). The Company owns and operates office properties located in submarkets in Houston, Texas. As of December 31, 2016, the Company’s portfolio consisted of five Class A assets comprising 19 buildings and totaling approximately 8.7 million rentable square feet in the Greenway, Galleria and Westchase submarkets of Houston. In addition, the Company operates a fee-based real estate service (the Third-Party Services Business) through a subsidiary, Eola Office Partners, LLC and its subsidiaries (collectively, Eola), which in total managed approximately 3.8 million square feet (unaudited) for primarily third-party owners, as of December 31, 2016. The Company’s properties include CityWestPlace, San Felipe Plaza, Phoenix Tower, Greenway Plaza and Post Oak Central.
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