Highwoods Properties (NYSE:HIW) and CoreSite Realty (NYSE:COR) are both mid-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.
Profitability
This table compares Highwoods Properties and CoreSite Realty's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Highwoods Properties | 43.16% | 14.22% | 6.30% |
CoreSite Realty | 13.19% | 51.47% | 3.67% |
Dividends
Highwoods Properties pays an annual dividend of $1.92 per share and has a dividend yield of 4.7%. CoreSite Realty pays an annual dividend of $4.92 per share and has a dividend yield of 4.0%. Highwoods Properties pays out 57.7% of its earnings in the form of a dividend. CoreSite Realty pays out 96.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CoreSite Realty has raised its dividend for 1 consecutive years. Highwoods Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a summary of current ratings and target prices for Highwoods Properties and CoreSite Realty, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Highwoods Properties | 0 | 2 | 10 | 0 | 2.83 |
CoreSite Realty | 3 | 3 | 4 | 0 | 2.10 |
Highwoods Properties presently has a consensus price target of $43.2222, indicating a potential upside of 5.88%. CoreSite Realty has a consensus price target of $124.1111, indicating a potential upside of 1.36%. Given Highwoods Properties' stronger consensus rating and higher probable upside, equities research analysts plainly believe Highwoods Properties is more favorable than CoreSite Realty.
Insider & Institutional Ownership
93.2% of Highwoods Properties shares are owned by institutional investors. Comparatively, 95.2% of CoreSite Realty shares are owned by institutional investors. 1.4% of Highwoods Properties shares are owned by insiders. Comparatively, 1.5% of CoreSite Realty shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Highwoods Properties and CoreSite Realty's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Highwoods Properties | $735.98 million | 5.76 | $136.92 million | $3.33 | 12.26 |
CoreSite Realty | $572.73 million | 9.14 | $75.84 million | $5.10 | 24.01 |
Highwoods Properties has higher revenue and earnings than CoreSite Realty. Highwoods Properties is trading at a lower price-to-earnings ratio than CoreSite Realty, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Highwoods Properties has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, CoreSite Realty has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500.
Summary
Highwoods Properties beats CoreSite Realty on 10 of the 17 factors compared between the two stocks.