Piedmont Realty Trust (NYSE:PDM – Get Free Report) and Alexandria Real Estate Equities (NYSE:ARE – Get Free Report) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, earnings, profitability, analyst recommendations, risk and valuation.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Piedmont Realty Trust and Alexandria Real Estate Equities, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Piedmont Realty Trust | 1 | 0 | 1 | 0 | 2.00 |
| Alexandria Real Estate Equities | 3 | 10 | 3 | 0 | 2.00 |
Piedmont Realty Trust presently has a consensus price target of $10.00, suggesting a potential upside of 9.85%. Alexandria Real Estate Equities has a consensus price target of $51.62, suggesting a potential downside of 2.88%. Given Piedmont Realty Trust’s higher possible upside, analysts clearly believe Piedmont Realty Trust is more favorable than Alexandria Real Estate Equities.
Risk & Volatility
Profitability
This table compares Piedmont Realty Trust and Alexandria Real Estate Equities’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Piedmont Realty Trust | -15.28% | -5.70% | -2.15% |
| Alexandria Real Estate Equities | -36.03% | -5.21% | -2.96% |
Valuation and Earnings
This table compares Piedmont Realty Trust and Alexandria Real Estate Equities”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Piedmont Realty Trust | $564.99 million | 2.01 | -$83.62 million | ($0.70) | -13.00 |
| Alexandria Real Estate Equities | $3.03 billion | 3.06 | -$1.43 billion | ($6.27) | -8.48 |
Piedmont Realty Trust has higher earnings, but lower revenue than Alexandria Real Estate Equities. Piedmont Realty Trust is trading at a lower price-to-earnings ratio than Alexandria Real Estate Equities, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
84.5% of Piedmont Realty Trust shares are held by institutional investors. Comparatively, 96.5% of Alexandria Real Estate Equities shares are held by institutional investors. 1.2% of Piedmont Realty Trust shares are held by company insiders. Comparatively, 1.4% of Alexandria Real Estate Equities shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
Piedmont Realty Trust beats Alexandria Real Estate Equities on 7 of the 13 factors compared between the two stocks.
About Piedmont Realty Trust
Piedmont Office Realty Trust, Inc. (also referred to herein as "Piedmont" or the "Company") (NYSE: PDM) is an owner, manager, developer, redeveloper and operator of high-quality, Class A office properties located primarily in major U.S. Sunbelt markets. The Company is a fully-integrated, self-managed real estate investment trust ("REIT") with local management offices in each of its markets and is investment-grade rated by Standard & Poor's and Moody's. The Company was designated an Energy Star Partner of the Year for 2021, 2022 and 2023, and it was the only office REIT headquartered in the Southeast to receive those designations. Approximately 85% of the Company's square footage is Energy Star certified and nearly 70% is LEED certified. Piedmont is headquartered in Atlanta, GA.
About Alexandria Real Estate Equities
Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500 company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. Alexandria has a total market capitalization of $33.1 billion and an asset base in North America of 73.5 million SF as of December 31, 2023, which includes 42.0 million RSF of operating properties, 5.5 million RSF of Class A/A+ properties undergoing construction and one near-term project expected to commence construction in the next two years, 2.1 million RSF of priority anticipated development and redevelopment projects, and 23.9 million SF of future development projects. Alexandria has a longstanding and proven track record of developing Class A/A+ properties clustered in life science, agtech, and advanced technology mega campuses that provide our innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science, agrifoodtech, climate innovation, and technology companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value.
Receive News & Ratings for Piedmont Realty Trust Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Piedmont Realty Trust and related companies with MarketBeat.com's FREE daily email newsletter.
