Washington Real Estate Investment Trust (NYSE:WRE) and CatchMark Timber Trust (NYSE:CTT) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.
Dividends
Washington Real Estate Investment Trust pays an annual dividend of $1.20 per share and has a dividend yield of 5.3%. CatchMark Timber Trust pays an annual dividend of $0.54 per share and has a dividend yield of 5.3%. Washington Real Estate Investment Trust pays out 72.3% of its earnings in the form of a dividend. CatchMark Timber Trust pays out -26.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Washington Real Estate Investment Trust has raised its dividend for 1 consecutive years and CatchMark Timber Trust has raised its dividend for 1 consecutive years.
Insider & Institutional Ownership
86.4% of Washington Real Estate Investment Trust shares are held by institutional investors. Comparatively, 76.9% of CatchMark Timber Trust shares are held by institutional investors. 0.8% of Washington Real Estate Investment Trust shares are held by insiders. Comparatively, 1.0% of CatchMark Timber 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.
Valuation & Earnings
This table compares Washington Real Estate Investment Trust and CatchMark Timber Trust's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Washington Real Estate Investment Trust | $309.18 million | 6.16 | $383.55 million | $1.66 | 13.57 |
CatchMark Timber Trust | $106.71 million | 4.67 | $-93,320,000.00 | ($2.05) | -4.98 |
Washington Real Estate Investment Trust has higher revenue and earnings than CatchMark Timber Trust. CatchMark Timber Trust is trading at a lower price-to-earnings ratio than Washington Real Estate Investment Trust, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Washington Real Estate Investment Trust has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, CatchMark Timber Trust has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.
Profitability
This table compares Washington Real Estate Investment Trust and CatchMark Timber Trust's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Washington Real Estate Investment Trust | 123.40% | 3.10% | 1.61% |
CatchMark Timber Trust | -25.76% | -16.84% | -4.15% |
Analyst Ratings
This is a summary of current recommendations and price targets for Washington Real Estate Investment Trust and CatchMark Timber Trust, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Washington Real Estate Investment Trust | 0 | 4 | 1 | 0 | 2.20 |
CatchMark Timber Trust | 0 | 2 | 3 | 0 | 2.60 |
Washington Real Estate Investment Trust currently has a consensus target price of $23.20, suggesting a potential upside of 3.02%. CatchMark Timber Trust has a consensus target price of $11.6250, suggesting a potential upside of 13.86%. Given CatchMark Timber Trust's stronger consensus rating and higher probable upside, analysts plainly believe CatchMark Timber Trust is more favorable than Washington Real Estate Investment Trust.
Summary
Washington Real Estate Investment Trust beats CatchMark Timber Trust on 10 of the 16 factors compared between the two stocks.