Head-To-Head Analysis: Easterly Government Properties (NYSE:DEA) vs. Terreno Realty (NYSE:TRNO)

Easterly Government Properties (NYSE:DEA) and Terreno Realty (NYSE:TRNO) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.

Profitability

This table compares Easterly Government Properties and Terreno Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Easterly Government Properties	3.22%	0.82%	0.33%
Terreno Realty	86.44%	10.35%	7.98%

Valuation & Earnings

This table compares Easterly Government Properties and Terreno Realty”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Easterly Government Properties	$336.10 million	3.30	$13.00 million	$0.24	99.44
Terreno Realty	$476.38 million	14.80	$402.99 million	$4.09	16.21

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

Analyst Ratings

This is a breakdown of current ratings for Easterly Government Properties and Terreno Realty, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Easterly Government Properties	2	2	1	0	1.80
Terreno Realty	1	2	8	1	2.75

Easterly Government Properties presently has a consensus price target of $23.49, suggesting a potential downside of 1.58%. Terreno Realty has a consensus price target of $69.57, suggesting a potential upside of 4.92%. Given Terreno Realty’s stronger consensus rating and higher probable upside, analysts plainly believe Terreno Realty is more favorable than Easterly Government Properties.

Insider and Institutional Ownership

86.5% of Easterly Government Properties shares are owned by institutional investors. 6.5% of Easterly Government Properties shares are owned by company insiders. Comparatively, 1.9% of Terreno Realty shares are owned 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.

Volatility and Risk

Easterly Government Properties has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Terreno Realty has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Dividends

Easterly Government Properties pays an annual dividend of $1.80 per share and has a dividend yield of 7.5%. Terreno Realty pays an annual dividend of $2.08 per share and has a dividend yield of 3.1%. Easterly Government Properties pays out 750.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Terreno Realty pays out 50.9% of its earnings in the form of a dividend. Terreno Realty has raised its dividend for 5 consecutive years.

Summary

Terreno Realty beats Easterly Government Properties on 14 of the 18 factors compared between the two stocks.

About Easterly Government Properties

Easterly Government Properties, Inc. (NYSE: DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. Easterly’s experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased to such agencies either directly or through the U.S. General Services Administration (GSA).

About Terreno Realty

Terreno Realty Corporation (Terreno, and together with its subsidiaries, the Company) acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. All square feet, acres, occupancy and number of properties disclosed in these notes to the consolidated financial statements are unaudited. As of December 31, 2023, the Company owned 259 buildings aggregating approximately 16.0 million square feet, 45 improved land parcels consisting of approximately 152.4 acres, seven properties under development or redevelopment and approximately 62.7 acres of land entitled for future development. The Company is an internally managed Maryland corporation and elected to be taxed as a real estate investment trust (REIT) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the Code), commencing with its taxable year ended December 31, 2010.