Analyzing TIER REIT (TIER) & Corporate Office Properties Trust (OFC)

Corporate Office Properties Trust (NYSE: OFC) and TIER REIT (OTCMKTS:TIER) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Dividends

Corporate Office Properties Trust pays an annual dividend of $1.10 per share and has a dividend yield of 3.4%. TIER REIT does not pay a dividend. 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.

Profitability

This table compares Corporate Office Properties Trust and TIER REIT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Corporate Office Properties Trust 15.86% 6.55% 2.48%
TIER REIT 174.73% 59.24% 25.37%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Corporate Office Properties Trust and TIER REIT, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Corporate Office Properties Trust 2 6 1 0 1.89
TIER REIT 0 0 2 0 3.00

Corporate Office Properties Trust currently has a consensus target price of $33.29, indicating a potential upside of 1.57%. TIER REIT has a consensus target price of $20.50, indicating a potential upside of 12.82%. Given TIER REIT’s stronger consensus rating and higher possible upside, analysts clearly believe TIER REIT is more favorable than Corporate Office Properties Trust.

Earnings and Valuation

This table compares Corporate Office Properties Trust and TIER REIT’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Corporate Office Properties Trust $578.09 million 5.61 $290.41 million $0.73 44.89
TIER REIT $220.99 million 3.93 $99.25 million N/A N/A

Corporate Office Properties Trust has higher revenue and earnings than TIER REIT.

Summary

TIER REIT beats Corporate Office Properties Trust on 7 of the 12 factors compared between the two stocks.

About Corporate Office Properties Trust

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).

About TIER REIT

TIER REIT, Inc. is a real estate investment trust. The Company’s business consists of owning, acquiring, developing, operating, investing in, and disposing of real estate assets. The Company’s business is conducted through Tier Operating Partnership LP (Tier OP). As of December 31, 2016, the Company owned interests in 29 operating office properties, one non-operating property and one development property located in 13 markets throughout the United States. It owns properties located in metropolitan cities and suburban markets in the United States. The Company’s office properties include The Terrace Office Park, Domain 3, Domain 4, 5950 Sherry Lane, Burnett Plaza, Loop Central, One BriarLake Plaza, Three Eldridge Place, Eisenhower I, Forum Office Park, 500 E. Pratt, Woodcrest Corporate Center and 111 Woodcrest. The Company’s properties are located in Austin, Dallas, Houston, Charlotte, Nashville, Atlanta and Denver.

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