Highwoods Properties, Inc. (HIW) vs Piedmont Realty Trust, Inc. (PDM)

Highwoods Properties, Inc. and Piedmont Realty Trust, Inc. are both Reit Office companies. Highwoods Properties, Inc. is the larger, with a market value of $3.5B against $1.2B — 2.9× the size. Piedmont Realty Trust, Inc. has negative trailing earnings, so its P/E is not meaningful; Highwoods Properties, Inc. trades at 18.4×. Highwoods Properties, Inc. grew revenue faster over the last twelve months: 5.40% against 2.85%. Highwoods Properties, Inc. has the higher net margin (21.7% vs −15.2%) and the higher return on invested capital (2.37% vs 1.33%). Only Highwoods Properties, Inc. pays a dividend (6.36%). Across the 21 metrics below, Highwoods Properties, Inc. leads on 16 and Piedmont Realty Trust, Inc. on 5.

Valuation

Metric HIW PDM Reit Office median
P/E 18.41 n/m 28.35
P/S 4.07 2.14 2.77
P/B 1.37 0.86 0.82
Price to free cash flow 62.41 n/m 13.95
EV/EBITDA 12.37 10.94 12.41
EV/Sales 7.84 6.16 6.90
Earnings yield 5.43% (7.10%) (2.06%)
Free cash flow yield 1.60% (2.62%) 6.73%

Profitability

Metric HIW PDM Reit Office median
Gross margin 67.18% 60.14% 60.87%
Operating margin 25.77% 13.80% 17.78%
Net margin 21.74% (15.18%) (2.87%)
Free cash flow margin 6.53% (5.61%) 14.89%
Return on equity 7.56% (5.91%) (1.07%)
Return on assets 2.94% (2.18%) (0.34%)
Return on invested capital 2.37% 1.33% 1.33%

Growth

Metric HIW PDM Reit Office median
Revenue growth (TTM) 5.40% 2.85% 2.67%
EPS growth (last fiscal year) 54.26% (4.69%) 8.85%
Revenue growth, 5-year CAGR 1.81% 1.10% 3.91%
Net income growth, 5-year CAGR (14.54%) 0.00% 0.00%

Health

Metric HIW PDM Reit Office median
Debt to equity 1.37 1.62 1.24
Current ratio 2.08 1.40 1.98
Net debt to EBITDA 6.97 7.13 6.86

Dividend

Metric HIW PDM Reit Office median
Dividend yield 6.36% 0.00% 4.16%
Payout ratio 1.17 — 3.34

Size

Metric HIW PDM Reit Office median
Market cap 3.50b 1.22b 1.22b

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