Piedmont Realty Trust (NYSE:PDM) vs. Office Properties Income Trust (NASDAQ:OPI) Financial Analysis

Piedmont Realty Trust (NYSE:PDM) and Office Properties Income Trust (NASDAQ:OPI) are both small-cap real estate companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.

Analyst Recommendations

This is a summary of recent ratings and price targets for Piedmont Realty Trust and Office Properties Income Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Piedmont Realty Trust	1	1	1	0	2.00
Office Properties Income Trust	1	0	0	1	2.50

Piedmont Realty Trust presently has a consensus price target of $10.50, suggesting a potential upside of 8.47%. Office Properties Income Trust has a consensus price target of $27.00, suggesting a potential upside of 48.60%. Given Office Properties Income Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Office Properties Income Trust is more favorable than Piedmont Realty Trust.

Earnings & Valuation

This table compares Piedmont Realty Trust and Office Properties Income Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Piedmont Realty Trust	$564.99 million	2.14	-$83.62 million	($0.65)	-14.89
Office Properties Income Trust	$466.97 million	2.88	N/A	N/A	N/A

Office Properties Income Trust has lower revenue, but higher earnings than Piedmont Realty Trust.

Profitability

This table compares Piedmont Realty Trust and Office Properties Income Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Piedmont Realty Trust	-14.18%	-5.39%	-2.00%
Office Properties Income Trust	N/A	N/A	N/A

Institutional and Insider Ownership

84.5% of Piedmont Realty Trust shares are held by institutional investors. Comparatively, 64.4% of Office Properties Income Trust shares are held by institutional investors. 1.2% of Piedmont Realty Trust shares are held by insiders. Comparatively, 1.8% of Office Properties Income Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Office Properties Income Trust beats Piedmont Realty Trust on 8 of the 11 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 Office Properties Income Trust

Office Properties Income Trust is a real estate investment trust. It owns, operates, and leases office buildings to single tenants and multi-tenant buildings. The company was founded on February 17, 2009 and is headquartered in Newton, MA.