Parkway Properties (NYSE: PKY) and Corporate Office Properties Trust (NYSE:OFC) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.
Valuation & Earnings
This table compares Parkway Properties and Corporate Office Properties Trust’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Parkway Properties | $213.81 million | 5.38 | $77.41 million | N/A | N/A |
| Corporate Office Properties Trust | $578.09 million | 5.61 | $290.41 million | $0.73 | 44.86 |
Corporate Office Properties Trust has higher revenue and earnings than Parkway Properties.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Parkway Properties and Corporate Office Properties Trust, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Parkway Properties | 0 | 7 | 1 | 0 | 2.13 |
| Corporate Office Properties Trust | 2 | 7 | 1 | 0 | 1.90 |
Parkway Properties presently has a consensus price target of $21.00, suggesting a potential downside of 8.62%. Corporate Office Properties Trust has a consensus price target of $32.75, suggesting a potential upside of 0.00%. Given Corporate Office Properties Trust’s higher possible upside, analysts plainly believe Corporate Office Properties Trust is more favorable than Parkway Properties.
Profitability
This table compares Parkway Properties and Corporate Office Properties Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Parkway Properties | N/A | -2.94% | -1.49% |
| Corporate Office Properties Trust | 15.86% | 6.55% | 2.48% |
Insider and Institutional Ownership
95.0% of Parkway Properties shares are held by institutional investors. 7.9% of Parkway Properties shares are held by company insiders. Comparatively, 0.6% of Corporate Office Properties Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Dividends
Parkway Properties pays an annual dividend of $0.40 per share and has a dividend yield of 1.7%. Corporate Office Properties Trust pays an annual dividend of $1.10 per share and has a dividend yield of 3.4%. Corporate Office Properties Trust pays out 150.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility & Risk
Parkway Properties has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, Corporate Office Properties Trust has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.
Summary
Corporate Office Properties Trust beats Parkway Properties on 8 of the 13 factors compared between the two stocks.
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.
Corporate Office Properties Trust Company Profile
Corporate Office Properties Trust is a fully-integrated and self-managed real estate investment trust (REIT). The Company owns, manages, leases, develops and acquires office and data center properties. The Company’s segments are Defense/IT Locations; Regional Office; operating wholesale data center, and other. As of December 31, 2016, the Company’s properties included 164 operating office properties totaling 17.2 million square feet, including 13 triple-net leased, single-tenant data center properties; 11 office properties under construction or redevelopment; 1,028 acres of land controlled for future development, and a wholesale data center with a critical load of 19.25 megawatts. The Company conducts all of its operations through Corporate Office Properties, L.P. (COPLP) and subsidiaries (collectively, the Operating Partnership). COPLP owns real estate both directly and through subsidiary partnerships and limited liability companies (LLCs).
Receive News & Ratings for Parkway Properties Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Parkway Properties Inc. and related companies with MarketBeat.com's FREE daily email newsletter.
