Kilroy Realty (NYSE:KRC) & Cromwell Property Group (OTCMKTS:CMWCF) Critical Review

Cromwell Property Group (OTCMKTS:CMWCF) and Kilroy Realty (NYSE:KRC) are both real estate companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.

Earnings and Valuation

This table compares Cromwell Property Group and Kilroy Realty”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cromwell Property Group	N/A	N/A	N/A	$0.11	2.38
Kilroy Realty	$1.11 billion	3.84	$276.12 million	$1.42	25.90

Kilroy Realty has higher revenue and earnings than Cromwell Property Group. Cromwell Property Group is trading at a lower price-to-earnings ratio than Kilroy Realty, indicating that it is currently the more affordable of the two stocks.

Dividends

Cromwell Property Group pays an annual dividend of $0.02 per share and has a dividend yield of 7.7%. Kilroy Realty pays an annual dividend of $2.16 per share and has a dividend yield of 5.9%. Cromwell Property Group pays out 18.2% of its earnings in the form of a dividend. Kilroy Realty pays out 152.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cromwell Property Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Cromwell Property Group and Kilroy Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cromwell Property Group	N/A	N/A	N/A
Kilroy Realty	15.47%	3.04%	1.56%

Institutional & Insider Ownership

94.2% of Kilroy Realty shares are owned by institutional investors. 0.8% of Kilroy Realty 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.

Analyst Ratings

This is a breakdown of current ratings and price targets for Cromwell Property Group and Kilroy Realty, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cromwell Property Group	0	0	0	0	0.00
Kilroy Realty	2	9	5	0	2.19

Kilroy Realty has a consensus target price of $39.13, indicating a potential upside of 6.40%. Given Kilroy Realty’s stronger consensus rating and higher possible upside, analysts plainly believe Kilroy Realty is more favorable than Cromwell Property Group.

Summary

Kilroy Realty beats Cromwell Property Group on 11 of the 13 factors compared between the two stocks.

About Cromwell Property Group

Cromwell Property Group (ASX:CMW) is a real estate investor and fund manager with operations on three continents and a global investor base. Cromwell is included in the S&P/ASX200. As at 30 June 2022, Cromwell had a market capitalisation of $2.0 billion, an Australian investment portfolio valued at $3.0 billion and total assets under management of $12.0 billion across Australia, New Zealand and Europe.

About Kilroy Realty

Kilroy Realty Corporation (NYSE: KRC, the company, Kilroy) is a leading U.S. landlord and developer, with operations in San Diego, Greater Los Angeles, the San Francisco Bay Area, Greater Seattle and Austin. The company has earned global recognition for sustainability, building operations, innovation and design. As a pioneer and innovator in the creation of a more sustainable real estate industry, the company's approach to modern business environments helps drive creativity and productivity for some of the world's leading technology, entertainment, life science and business services companies. The company is a publicly traded real estate investment trust (REIT) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office, life science and mixed-use projects. As of December 31, 2023, Kilroy's stabilized portfolio totaled approximately 17.0 million square feet of primarily office and life science space that was 85.0% occupied and 86.4% leased. The company also had approximately 1,000 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 92.5%. In addition, the company had two in-process life science redevelopment projects totaling approximately 100,000 square feet with total estimated redevelopment costs of $80.0 million and one approximately 875,000 square foot in-process development project with a total estimated investment of $1.0 billion.