Contrasting Cousins Properties (NYSE:CUZ) and Whitestone REIT (NYSE:WSR)

Cousins Properties (NYSE:CUZ) and Whitestone REIT (NYSE:WSR) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Profitability

This table compares Cousins Properties and Whitestone REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cousins Properties	5.98%	1.20%	0.65%
Whitestone REIT	28.16%	10.10%	3.89%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Cousins Properties and Whitestone REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cousins Properties	0	5	6	0	2.55
Whitestone REIT	0	0	3	0	3.00

Cousins Properties currently has a consensus target price of $31.09, suggesting a potential upside of 23.21%. Whitestone REIT has a consensus target price of $15.50, suggesting a potential upside of 17.03%. Given Cousins Properties’ higher possible upside, analysts clearly believe Cousins Properties is more favorable than Whitestone REIT.

Earnings and Valuation

This table compares Cousins Properties and Whitestone REIT”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cousins Properties	$856.76 million	4.95	$45.96 million	$0.35	72.10
Whitestone REIT	$154.28 million	4.38	$36.89 million	$0.85	15.58

Cousins Properties has higher revenue and earnings than Whitestone REIT. Whitestone REIT is trading at a lower price-to-earnings ratio than Cousins Properties, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Cousins Properties has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, Whitestone REIT has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.

Insider & Institutional Ownership

94.4% of Cousins Properties shares are owned by institutional investors. Comparatively, 69.5% of Whitestone REIT shares are owned by institutional investors. 1.4% of Cousins Properties shares are owned by company insiders. Comparatively, 3.2% of Whitestone REIT shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Cousins Properties pays an annual dividend of $1.28 per share and has a dividend yield of 5.1%. Whitestone REIT pays an annual dividend of $0.54 per share and has a dividend yield of 4.1%. Cousins Properties pays out 365.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Whitestone REIT pays out 63.5% of its earnings in the form of a dividend. Whitestone REIT has increased its dividend for 5 consecutive years.

Summary

Cousins Properties beats Whitestone REIT on 9 of the 17 factors compared between the two stocks.

About Cousins Properties

Cousins Properties Incorporated ("Cousins") is a fully integrated, self-administered, and self-managed real estate investment trust (REIT). The Company, based in Atlanta and acting through its operating partnership, Cousins Properties LP, primarily invests in Class A office buildings located in high-growth Sun Belt markets. Founded in 1958, Cousins creates shareholder value through its extensive expertise in the development, acquisition, leasing, and management of high-quality real estate assets. The Company has a comprehensive strategy in place based on a simple platform, trophy assets, and opportunistic investments.

About Whitestone REIT

Whitestone REIT (NYSE: WSR) is a community-centered real estate investment trust (REIT) that acquires, owns, operates, and develops open-air, retail centers located in some of the fastest growing markets in the country: Phoenix, Austin, Dallas-Fort Worth, Houston and San Antonio. Our centers are convenience focused: merchandised with a mix of service-oriented tenants providing food (restaurants and grocers), self-care (health and fitness), services (financial and logistics), education and entertainment to the surrounding communities. The Company believes its strong community connections and deep tenant relationships are key to the success of its current centers and its acquisition strategy.