Critical Analysis: Cousins Properties (NYSE:CUZ) vs. Brandywine Realty Trust (NYSE:BDN)

Cousins Properties (NYSE:CUZ) and Brandywine Realty Trust (NYSE:BDN) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Earnings & Valuation

This table compares Cousins Properties and Brandywine Realty Trust”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	5.66	$45.96 million	$0.37	78.08
Brandywine Realty Trust	$505.52 million	1.54	-$195.91 million	($1.88)	-2.39

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

Profitability

This table compares Cousins Properties and Brandywine Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cousins Properties	6.51%	1.27%	0.70%
Brandywine Realty Trust	-65.33%	-32.12%	-9.31%

Dividends

Cousins Properties pays an annual dividend of $1.28 per share and has a dividend yield of 4.4%. Brandywine Realty Trust pays an annual dividend of $0.60 per share and has a dividend yield of 13.3%. Cousins Properties pays out 345.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brandywine Realty Trust pays out -31.9% of its earnings in the form of a dividend. Brandywine Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current ratings and recommmendations for Cousins Properties and Brandywine Realty Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cousins Properties	0	4	6	0	2.60
Brandywine Realty Trust	0	2	0	0	2.00

Cousins Properties currently has a consensus target price of $32.50, suggesting a potential upside of 12.50%. Brandywine Realty Trust has a consensus target price of $4.50, suggesting a potential upside of 0.11%. Given Cousins Properties’ stronger consensus rating and higher probable upside, research analysts plainly believe Cousins Properties is more favorable than Brandywine Realty Trust.

Volatility and Risk

Cousins Properties has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, Brandywine Realty Trust has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500.

Insider & Institutional Ownership

94.4% of Cousins Properties shares are owned by institutional investors. Comparatively, 87.3% of Brandywine Realty Trust shares are owned by institutional investors. 1.5% of Cousins Properties shares are owned by insiders. Comparatively, 3.3% of Brandywine Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Cousins Properties beats Brandywine Realty Trust on 12 of the 16 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 Brandywine Realty Trust

Brandywine Realty Trust (NYSE: BDN) is one of the largest, publicly traded, full-service, integrated real estate companies in the United States with a core focus in the Philadelphia and Austin markets. Organized as a real estate investment trust (REIT), we own, develop, lease and manage an urban, town center and transit-oriented portfolio comprising 160 properties and 22.6 million square feet as of September 30, 2023 which excludes assets held for sale. Our purpose is to shape, connect and inspire the world around us through our expertise, the relationships we foster, the communities in which we live and work, and the history we build together.