Easterly Government Properties, Inc. (DEA) vs Highwoods Properties, Inc. (HIW)

Easterly Government Properties, Inc. and Highwoods Properties, Inc. are both Reit Office companies. Highwoods Properties, Inc. is the larger, with a market value of $3.3B against $1.1B — 3.1× the size. Highwoods Properties, Inc. trades at the lower P/E: 19.8× against 105×. Easterly Government Properties, Inc. grew revenue faster over the last twelve months: 13.0% against 3.05%. Highwoods Properties, Inc. has the higher net margin (19.9% vs 2.86%) and the higher return on invested capital (2.17% vs 1.92%). Both pay a dividend; Easterly Government Properties, Inc. yields more (9.01% vs 8.33%). Across the 22 metrics below, Easterly Government Properties, Inc. leads on 14 and Highwoods Properties, Inc. on 8.

Valuation

Metric DEA HIW Reit Office median
P/E 105.04 19.83 38.94
P/S 2.98 3.98 2.92
P/B 0.78 1.30 0.78
Price to free cash flow 14.12 n/m 14.22
EV/EBITDA 12.24 12.81 12.77
EV/Sales 6.88 7.99 7.03
Earnings yield 0.95% 5.04% (3.43%)
Free cash flow yield 7.08% (3.25%) 5.85%

Profitability

Metric DEA HIW Reit Office median
Gross margin 67.49% 67.21% 60.53%
Operating margin 23.65% 24.71% 16.84%
Net margin 2.86% 19.91% (8.23%)
Free cash flow margin 21.10% (12.92%) 16.39%
Return on equity 0.74% 6.77% (2.66%)
Return on assets 0.30% 2.66% (0.95%)
Return on invested capital 1.92% 2.17% 1.32%

Growth

Metric DEA HIW Reit Office median
Revenue growth (TTM) 13.04% 3.05% 1.08%
EPS growth (last fiscal year) (40.00%) 54.26% —
Revenue growth, 5-year CAGR 6.52% 1.81% 4.37%
Net income growth, 5-year CAGR 1.68% (14.54%) 0.00%

Health

Metric DEA HIW Reit Office median
Debt to equity 1.26 1.36 1.20
Current ratio 3.88 1.68 2.43
Net debt to EBITDA 6.86 6.97 6.91

Dividend

Metric DEA HIW Reit Office median
Dividend yield 9.01% 8.33% 6.16%
Payout ratio 3.93 1.38 1.38

Size

Metric DEA HIW Reit Office median
Market cap 1.07b 3.31b 1.39b

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