Parkway Properties (NYSE: PKY) and Gramercy Property Trust (NYSE:GPT) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.
Institutional & Insider Ownership
95.0% of Parkway Properties shares are held by institutional investors. Comparatively, 87.0% of Gramercy Property Trust shares are held by institutional investors. 7.9% of Parkway Properties shares are held by insiders. Comparatively, 1.0% of Gramercy Property Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares Parkway Properties and Gramercy Property Trust’s 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%|
Earnings & Valuation
This table compares Parkway Properties and Gramercy Property Trust’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Parkway Properties||$182.22 million||6.31||$54.29 million||N/A||N/A|
|Gramercy Property Trust||$525.64 million||8.36||$368.69 million||$0.09||321.26|
Gramercy Property Trust has higher revenue and earnings than Parkway Properties.
This is a summary of current ratings for Parkway Properties and Gramercy Property Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gramercy Property Trust||1||1||2||0||2.25|
Parkway Properties currently has a consensus price target of $21.60, indicating a potential downside of 5.92%. Gramercy Property Trust has a consensus price target of $32.00, indicating a potential upside of 10.69%. Given Gramercy Property Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Gramercy Property Trust is more favorable than Parkway Properties.
Risk & Volatility
Parkway Properties has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500. Comparatively, Gramercy Property Trust has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500.
Parkway Properties pays an annual dividend of $0.40 per share and has a dividend yield of 1.7%. Gramercy Property Trust pays an annual dividend of $1.50 per share and has a dividend yield of 5.2%. 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. Gramercy Property Trust has increased its dividend for 2 consecutive years. Gramercy Property Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Gramercy Property Trust beats Parkway Properties on 11 of the 15 factors compared between the two stocks.
About Parkway Properties
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.
About Gramercy Property Trust
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.
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