Mid-America Apartment Communities (MAA) and Corporate Office Properties Trust (OFC) Head to Head Contrast

Mid-America Apartment Communities (NYSE:MAA) and Corporate Office Properties Trust (NYSE:OFC) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.

Institutional & Insider Ownership

93.0% of Mid-America Apartment Communities shares are owned by institutional investors. 1.3% of Mid-America Apartment Communities shares are owned by company insiders. Comparatively, 0.6% of Corporate Office Properties Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Mid-America Apartment Communities and Corporate Office Properties Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mid-America Apartment Communities 22.36% 5.28% 3.01%
Corporate Office Properties Trust 10.81% 4.52% 1.85%

Analyst Ratings

This is a breakdown of current ratings for Mid-America Apartment Communities and Corporate Office Properties Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mid-America Apartment Communities 0 8 6 0 2.43
Corporate Office Properties Trust 1 5 2 0 2.13

Mid-America Apartment Communities currently has a consensus price target of $103.40, suggesting a potential upside of 3.56%. Corporate Office Properties Trust has a consensus price target of $30.38, suggesting a potential upside of 4.53%. Given Corporate Office Properties Trust’s higher possible upside, analysts plainly believe Corporate Office Properties Trust is more favorable than Mid-America Apartment Communities.

Valuation & Earnings

This table compares Mid-America Apartment Communities and Corporate Office Properties Trust’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mid-America Apartment Communities $1.53 billion 7.43 $328.37 million $5.94 16.81
Corporate Office Properties Trust $612.82 million 4.90 $70.09 million $2.03 14.32

Mid-America Apartment Communities has higher revenue and earnings than Corporate Office Properties Trust. Corporate Office Properties Trust is trading at a lower price-to-earnings ratio than Mid-America Apartment Communities, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Mid-America Apartment Communities has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, Corporate Office Properties Trust has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.

Dividends

Mid-America Apartment Communities pays an annual dividend of $3.69 per share and has a dividend yield of 3.7%. Corporate Office Properties Trust pays an annual dividend of $1.10 per share and has a dividend yield of 3.8%. Mid-America Apartment Communities pays out 62.1% of its earnings in the form of a dividend. Corporate Office Properties Trust pays out 54.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Mid-America Apartment Communities has raised its dividend for 7 consecutive years. Corporate Office Properties Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Mid-America Apartment Communities beats Corporate Office Properties Trust on 13 of the 17 factors compared between the two stocks.

Mid-America Apartment Communities Company Profile

MAA, an S&P 500 company, is a real estate investment trust, or REIT, focused on delivering full-cycle and superior investment performance for shareholders through the ownership, management, acquisition, development and redevelopment of quality apartment communities throughout the United States. As of June 30, 2018, MAA had ownership interest in 101,362 apartment units, including communities currently in development, across 17 states and the District of Columbia.

Corporate Office Properties Trust Company Profile

COPT is a REIT that owns, manages, leases, develops and selectively acquires office and data center properties in locations that support the United States Government and its contractors, most of whom are engaged in national security, defense and information technology (?IT?) related activities servicing what it believes are growing, durable, priority missions (?Defense/IT Locations?). The Company also owns a portfolio of office properties located in select urban/urban-like submarkets in the Greater Washington, DC/Baltimore region with durable Class-A office fundamentals and characteristics (?Regional Office Properties?). As of June 30, 2018, the Company derived 88% of its core portfolio annualized revenue from Defense/IT Locations and 12% from its Regional Office Properties. As of the same date and including six buildings owned through an unconsolidated joint venture, COPT's core portfolio of 157 office and data center shell properties encompassed 17.5 million square feet and was 93.4% leased; the Company also owned one wholesale data center with a critical load of 19.25 megawatts.

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