Service Properties Trust (NASDAQ:SVC – Get Free Report) and Piedmont Realty Trust (NYSE:PDM – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.
Profitability
This table compares Service Properties Trust and Piedmont Realty Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Service Properties Trust | -11.15% | -29.70% | -2.96% |
| Piedmont Realty Trust | -14.80% | -5.44% | -2.09% |
Insider and Institutional Ownership
77.6% of Service Properties Trust shares are owned by institutional investors. Comparatively, 84.5% of Piedmont Realty Trust shares are owned by institutional investors. 1.6% of Service Properties Trust shares are owned by company insiders. Comparatively, 1.2% of Piedmont Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility & Risk
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Service Properties Trust and Piedmont Realty Trust, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Service Properties Trust | 1 | 2 | 1 | 0 | 2.00 |
| Piedmont Realty Trust | 1 | 1 | 1 | 0 | 2.00 |
Service Properties Trust presently has a consensus target price of $2.00, suggesting a potential upside of 38.89%. Piedmont Realty Trust has a consensus target price of $9.00, suggesting a potential upside of 15.92%. Given Service Properties Trust’s higher probable upside, equities research analysts clearly believe Service Properties Trust is more favorable than Piedmont Realty Trust.
Valuation & Earnings
This table compares Service Properties Trust and Piedmont Realty Trust”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Service Properties Trust | $1.81 billion | 0.13 | -$202.32 million | ($1.21) | -1.19 |
| Piedmont Realty Trust | $564.99 million | 1.72 | -$83.62 million | ($0.68) | -11.42 |
Piedmont Realty Trust has lower revenue, but higher earnings than Service Properties Trust. Piedmont Realty Trust is trading at a lower price-to-earnings ratio than Service Properties Trust, indicating that it is currently the more affordable of the two stocks.
Summary
Piedmont Realty Trust beats Service Properties Trust on 7 of the 12 factors compared between the two stocks.
About Service Properties Trust
Service Properties Trust (Nasdaq: SVC) is a real estate investment trust with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of December 31, 2023, SVC owned 221 hotels with over 37,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service. As of December 31, 2023, SVC also owned 752 service-focused retail net lease properties totaling approximately 13.3 million square feet throughout the United States. SVC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $41 billion in assets under management as of December 31, 2023, and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. SVC is headquartered in Newton, MA.
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.
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