PS Business Parks (NYSE: PSB) and Equity One (NYSE:EQY) are both mid-cap financials companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.
Insider & Institutional Ownership
71.9% of PS Business Parks shares are owned by institutional investors. Comparatively, 64.0% of Equity One shares are owned by institutional investors. 1.6% of PS Business Parks shares are owned by company insiders. Comparatively, 35.9% of Equity One shares are owned by company 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.
This table compares PS Business Parks and Equity One’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|PS Business Parks||42.43%||9.85%||8.29%|
PS Business Parks pays an annual dividend of $3.40 per share and has a dividend yield of 2.9%. Equity One pays an annual dividend of $0.72 per share and has a dividend yield of 2.3%. PS Business Parks pays out 113.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equity One pays out 146.9% 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 has raised its dividend for 4 consecutive years. PS Business Parks is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of current ratings and price targets for PS Business Parks and Equity One, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|PS Business Parks||1||1||0||0||1.50|
PS Business Parks currently has a consensus target price of $135.00, indicating a potential upside of 15.47%. Given PS Business Parks’ higher possible upside, equities research analysts clearly believe PS Business Parks is more favorable than Equity One.
Volatility & Risk
PS Business Parks has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500. Comparatively, Equity One has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.
Valuation & Earnings
This table compares PS Business Parks and Equity One’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PS Business Parks||$387.39 million||8.22||$128.02 million||$3.01||38.84|
PS Business Parks has higher revenue and earnings than Equity One. PS Business Parks is trading at a lower price-to-earnings ratio than Equity One, indicating that it is currently the more affordable of the two stocks.
PS Business Parks beats Equity One on 10 of the 13 factors compared between the two stocks.
PS Business Parks Company Profile
PS Business Parks, Inc. is a self-advised and self-managed real estate investment trust (REIT). The Company owns, operates and develops commercial properties, primarily multi-tenant flex, office and industrial parks. It focuses on owning concentrated business parks. PS Business Parks, L.P. (the Operating Partnership) is a California limited partnership, which owns directly or indirectly substantially all of its assets and through, which the Company conducts substantially all of its business. PSB is the partner of the Operating Partnership and, as of December 31, 2016, owned 77.9% of the common partnership units. The remaining common partnership units are owned by Public Storage (PS). As of December 31, 2016, the Company owned and operated 28.1 million rentable square feet of commercial space, comprising 99 business parks, in the states, including California, Texas, Virginia, Florida, Maryland and Washington. It also manages 684,000 rentable square feet on behalf of PS.
Equity One Company Profile
Equity One, Inc. is a real estate investment trust (REIT). The Company owns, manages, acquires, develops and redevelops shopping centers and retail properties located in supply constrained suburban and urban communities. As of December 31, 2016, the Company’s portfolio consisted of 122 properties, including 101 retail properties and five non-retail properties totaling approximately 12.8 million square feet of gross leasable area (GLA), 10 development or redevelopment properties with approximately 2.3 million square feet of GLA, and six land parcels. Its retail occupancy excluding developments and redevelopments was 95.8% and included national, regional and local tenants as of December 31, 2016. In addition, the Company had joint venture interests in six retail properties and two office buildings totaling approximately 1.4 million square feet of GLA as of December 31, 2016.
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