Easterly Government Properties, Inc. (DEA) vs Franklin Street Properties Corp. (FSP)

Easterly Government Properties, Inc. and Franklin Street Properties Corp. are both Reit Office companies. Easterly Government Properties, Inc. is the larger, with a market value of $1.1B against $33.3M — 32.2× the size. Franklin Street Properties Corp. has negative trailing earnings, so its P/E is not meaningful; Easterly Government Properties, Inc. trades at 105×. Easterly Government Properties, Inc. grew revenue faster over the last twelve months: 13.0% against −5.33%. Easterly Government Properties, Inc. has the higher net margin (2.86% vs −39.5%) and the higher return on invested capital (1.92% vs −2.58%). Both pay a dividend; Easterly Government Properties, Inc. yields more (9.01% vs 1.72%). Across the 21 metrics below, Easterly Government Properties, Inc. leads on 16 and Franklin Street Properties Corp. on 5.

Valuation

Metric DEA FSP Reit Office median
P/E 105.04 n/m 38.94
P/S 2.98 0.34 2.92
P/B 0.78 0.06 0.78
Price to free cash flow 14.12 n/m 14.22
EV/EBITDA 12.24 20.83 12.77
EV/Sales 6.88 2.52 7.03
Earnings yield 0.95% (114.29%) (3.43%)
Free cash flow yield 7.08% (13.55%) 5.85%

Profitability

Metric DEA FSP Reit Office median
Gross margin 67.49% 44.31% 60.53%
Operating margin 23.65% (31.58%) 16.84%
Net margin 2.86% (39.45%) (8.23%)
Free cash flow margin 21.10% (4.65%) 16.39%
Return on equity 0.74% (6.94%) (2.66%)
Return on assets 0.30% (4.73%) (0.95%)
Return on invested capital 1.92% (2.58%) 1.32%

Growth

Metric DEA FSP Reit Office median
Revenue growth (TTM) 13.04% (5.33%) 1.08%
EPS growth (last fiscal year) (40.00%) 15.69% —
Revenue growth, 5-year CAGR 6.52% (15.30%) 4.37%
Net income growth, 5-year CAGR 1.68% 0.00% 0.00%

Health

Metric DEA FSP Reit Office median
Debt to equity 1.26 0.44 1.20
Current ratio 3.88 2.50 2.43
Net debt to EBITDA 6.86 17.43 6.91

Dividend

Metric DEA FSP Reit Office median
Dividend yield 9.01% 1.72% 6.16%
Payout ratio 3.93 0.50 1.38

Size

Metric DEA FSP Reit Office median
Market cap 1.07b 33.28m 1.39b

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