Analyzing Whitestone REIT (WSR) and Washington Real Estate Investment Trust (WRE)

Whitestone REIT (NYSE: WSR) and Washington Real Estate Investment Trust (NYSE:WRE) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.

Risk & Volatility

Whitestone REIT has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, Washington Real Estate Investment Trust has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Whitestone REIT and Washington Real Estate Investment Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Whitestone REIT 1 1 2 0 2.25
Washington Real Estate Investment Trust 0 2 3 0 2.60

Whitestone REIT presently has a consensus target price of $14.67, suggesting a potential upside of 12.39%. Washington Real Estate Investment Trust has a consensus target price of $34.10, suggesting a potential upside of 4.09%. Given Whitestone REIT’s higher probable upside, equities analysts plainly believe Whitestone REIT is more favorable than Washington Real Estate Investment Trust.

Valuation & Earnings

This table compares Whitestone REIT and Washington Real Estate Investment Trust’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Whitestone REIT $112.35 million 4.47 $49.43 million $0.13 100.39
Washington Real Estate Investment Trust $317.68 million 7.93 $182.98 million $1.33 24.63

Washington Real Estate Investment Trust has higher revenue and earnings than Whitestone REIT. Washington Real Estate Investment Trust is trading at a lower price-to-earnings ratio than Whitestone REIT, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Whitestone REIT and Washington Real Estate Investment Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Whitestone REIT 4.36% 1.69% 0.54%
Washington Real Estate Investment Trust 31.36% 9.34% 4.36%

Dividends

Whitestone REIT pays an annual dividend of $1.14 per share and has a dividend yield of 8.7%. Washington Real Estate Investment Trust pays an annual dividend of $1.20 per share and has a dividend yield of 3.7%. Whitestone REIT pays out 877.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Washington Real Estate Investment Trust pays out 90.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

43.7% of Whitestone REIT shares are held by institutional investors. Comparatively, 84.9% of Washington Real Estate Investment Trust shares are held by institutional investors. 5.3% of Whitestone REIT shares are held by company insiders. Comparatively, 0.6% of Washington Real Estate Investment Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Washington Real Estate Investment Trust beats Whitestone REIT on 13 of the 16 factors compared between the two stocks.

Whitestone REIT Company Profile

Whitestone REIT is a real estate investment trust. The Company is engaged in owning and operating commercial properties in culturally diverse markets in various metropolitan areas. The Company’s acquisition targets are located in densely populated, culturally diverse neighborhoods, primarily in and around Austin, Chicago, Dallas-Fort Worth, Houston, Phoenix and San Antonio. As of December 31, 2016, the Company owned or held interests in 69 commercial properties, including 15 properties in Houston, five properties in Dallas-Fort Worth, three properties in San Antonio, four properties in Austin, 27 properties in the Scottsdale and Phoenix, Arizona metropolitan areas, and one property in Buffalo Grove, Illinois, a suburb of Chicago. As of December 31, 2016, the Company’s properties included Heritage Trace Plaza, Headquarters Village, La Mirada, The Marketplace at Central, Mercado at Scottsdale Ranch, Paradise Plaza, Parkside Village North, Pima Norte and Quinlan Crossing.

Washington Real Estate Investment Trust Company Profile

Washington Real Estate Investment Trust is a self-administered equity real estate investment trust. The Company’s business consists of the ownership and operation of real property in the greater Washington metro region. The Company owns a diversified portfolio of office buildings, multifamily buildings and retail centers. The Company’s segments include office, multifamily and retail. The Company’s office properties provide office space for various types of businesses and professions. The Company’s multifamily properties provide rental housing for individuals and families throughout the Washington metro region. Its retail properties are typically grocery store anchored neighborhood centers that include other small shop tenants or regional power centers with various junior box tenants. As of April 4, 2017, it owned a diversified portfolio of 50 properties, totaling approximately 6.0 million square feet of commercial space and 4,480 residential units, and land held for development.

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