First Potomac Realty Trust (NYSE: FPO) and Easterly Government Properties (NYSE:DEA) are both small-cap financials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.
Earnings & Valuation
This table compares First Potomac Realty Trust and Easterly Government Properties’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|First Potomac Realty Trust||N/A||N/A||N/A||$0.69||16.14|
|Easterly Government Properties||$104.62 million||8.92||$3.41 million||$0.10||212.80|
First Potomac Realty Trust pays an annual dividend of $0.40 per share and has a dividend yield of 3.6%. Easterly Government Properties pays an annual dividend of $1.04 per share and has a dividend yield of 4.9%. First Potomac Realty Trust pays out 58.0% of its earnings in the form of a dividend. Easterly Government Properties pays out 1,040.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Insider & Institutional Ownership
93.1% of First Potomac Realty Trust shares are owned by institutional investors. Comparatively, 87.2% of Easterly Government Properties shares are owned by institutional investors. 2.1% of First Potomac Realty Trust shares are owned by company insiders. Comparatively, 15.6% of Easterly Government Properties shares are owned 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.
This is a summary of current ratings and target prices for First Potomac Realty Trust and Easterly Government Properties, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Potomac Realty Trust||2||1||1||0||1.75|
|Easterly Government Properties||0||1||2||0||2.67|
First Potomac Realty Trust presently has a consensus price target of $11.29, indicating a potential upside of 1.32%. Easterly Government Properties has a consensus price target of $22.83, indicating a potential upside of 7.30%. Given Easterly Government Properties’ stronger consensus rating and higher probable upside, analysts clearly believe Easterly Government Properties is more favorable than First Potomac Realty Trust.
This table compares First Potomac Realty Trust and Easterly Government Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Potomac Realty Trust||-7.99%||-2.35%||-0.94%|
|Easterly Government Properties||3.12%||0.54%||0.32%|
Easterly Government Properties beats First Potomac Realty Trust on 9 of the 12 factors compared between the two stocks.
About First Potomac Realty Trust
First Potomac Realty Trust (First Potomac) is engaged in ownership, management, redevelopment and development of office and business park properties in the greater Washington, D.C. region. The Company’s segments include Washington, D.C., Maryland, Northern Virginia and Southern Virginia. The Company conducts its business through First Potomac Realty Investment Limited Partnership, its operating partnership. The Company’s portfolio consist a mix of single-tenant and multi-tenant office properties, and business parks. The office properties are single-story and multi-story buildings that are primarily for office uses, and business parks consists of buildings with office features combined with some industrial property space. As of December 31, 2016, the Company owned properties totaling 6.7 million square feet and had a non-controlling ownership interest in properties totaling an additional 0.9 million square feet through five unconsolidated joint ventures.
About Easterly Government Properties
Easterly Government Properties, Inc. is an internally managed real estate investment trust (REIT). The Company focuses on the acquisition, development and management of Class A commercial properties that are leased to the United States Government agencies. The Company leases its properties to such agencies through the United States General Services Administration (GSA). The operations of the Company are carried on primarily through Easterly Government Properties, LP and the subsidiaries of the Operating Partnership. As of December 31, 2016, it had 43 operating properties in the United States, including 40 operating properties that are leased primarily to the United States Government tenant agencies and three operating properties that are entirely leased to private tenants, encompassing approximately 3.1 million square feet in the aggregate. In addition, the Company had one property under development encompassing approximately 0.1 million square feet as of December 31, 2016.
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