Douglas Emmett, Inc. (DEI) vs Highwoods Properties, Inc. (HIW)

Douglas Emmett, Inc. and Highwoods Properties, Inc. are both Reit Office companies. Highwoods Properties, Inc. is the larger, with a market value of $3.3B against $1.6B — 2.0× the size. Douglas Emmett, Inc. has negative trailing earnings, so its P/E is not meaningful; Highwoods Properties, Inc. trades at 19.8×. Highwoods Properties, Inc. grew revenue faster over the last twelve months: 3.05% against 0.78%. Highwoods Properties, Inc. has the higher net margin (19.9% vs −2.28%) and the higher return on invested capital (2.17% vs 1.35%). Both pay a dividend; Highwoods Properties, Inc. yields more (8.33% vs 5.58%). Across the 21 metrics below, Highwoods Properties, Inc. leads on 13 and Douglas Emmett, Inc. on 8.

Valuation

Metric DEI HIW Reit Office median
P/E n/m 19.83 38.94
P/S 1.63 3.98 2.92
P/B 0.47 1.30 0.78
Price to free cash flow 25.54 n/m 14.22
EV/EBITDA 11.73 12.81 12.77
EV/Sales 6.96 7.99 7.03
Earnings yield (1.53%) 5.04% (3.43%)
Free cash flow yield 3.92% (3.25%) 5.85%

Profitability

Metric DEI HIW Reit Office median
Gross margin 63.18% 67.21% 60.53%
Operating margin 19.00% 24.71% 16.84%
Net margin (2.28%) 19.91% (8.23%)
Free cash flow margin 6.39% (12.92%) 16.39%
Return on equity (0.65%) 6.77% (2.66%)
Return on assets (0.24%) 2.66% (0.95%)
Return on invested capital 1.35% 2.17% 1.32%

Growth

Metric DEI HIW Reit Office median
Revenue growth (TTM) 0.78% 3.05% 1.08%
EPS growth (last fiscal year) (30.77%) 54.26% —
Revenue growth, 5-year CAGR 2.40% 1.81% 4.37%
Net income growth, 5-year CAGR (20.25%) (14.54%) 0.00%

Health

Metric DEI HIW Reit Office median
Debt to equity 1.63 1.36 1.20
Current ratio 2.60 1.68 2.43
Net debt to EBITDA 8.73 6.97 6.91

Dividend

Metric DEI HIW Reit Office median
Dividend yield 5.58% 8.33% 6.16%
Payout ratio 2.58 1.38 1.38

Size

Metric DEI HIW Reit Office median
Market cap 1.62b 3.31b 1.39b

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