Head-To-Head Analysis: COPT Defense Properties (NYSE:CDP) versus W.P. Carey (NYSE:WPC)

W.P. Carey (NYSE:WPC) and COPT Defense Properties (NYSE:CDP) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares W.P. Carey and COPT Defense Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
W.P. Carey	27.17%	5.67%	2.62%
COPT Defense Properties	19.94%	9.82%	3.46%

Valuation and Earnings

This table compares W.P. Carey and COPT Defense Properties”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
W.P. Carey	$1.72 billion	9.15	$466.36 million	$2.11	33.97
COPT Defense Properties	$763.92 million	4.74	$152.32 million	$1.35	23.71

W.P. Carey has higher revenue and earnings than COPT Defense Properties. COPT Defense Properties is trading at a lower price-to-earnings ratio than W.P. Carey, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for W.P. Carey and COPT Defense Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
W.P. Carey	1	7	2	0	2.10
COPT Defense Properties	0	3	5	0	2.63

W.P. Carey presently has a consensus price target of $71.44, indicating a potential downside of 0.32%. COPT Defense Properties has a consensus price target of $33.88, indicating a potential upside of 5.85%. Given COPT Defense Properties’ stronger consensus rating and higher probable upside, analysts clearly believe COPT Defense Properties is more favorable than W.P. Carey.

Institutional and Insider Ownership

73.7% of W.P. Carey shares are owned by institutional investors. 0.9% of W.P. Carey shares are owned by company insiders. Comparatively, 1.4% of COPT Defense Properties shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

W.P. Carey has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, COPT Defense Properties has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.

Dividends

W.P. Carey pays an annual dividend of $3.72 per share and has a dividend yield of 5.2%. COPT Defense Properties pays an annual dividend of $1.22 per share and has a dividend yield of 3.8%. W.P. Carey pays out 176.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. COPT Defense Properties pays out 90.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. W.P. Carey has raised its dividend for 2 consecutive years. W.P. Carey is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

W.P. Carey beats COPT Defense Properties on 9 of the 17 factors compared between the two stocks.

About W.P. Carey

W. P. Carey ranks among the largest net lease REITs with a well-diversified portfolio of high-quality, operationally critical commercial real estate, which includes 1,424 net lease properties covering approximately 173 million square feet and a portfolio of 89 self-storage operating properties as of December 31, 2023. With offices in New York, London, Amsterdam and Dallas, the company remains focused on investing primarily in single-tenant, industrial, warehouse and retail properties located in the U.S. and Northern and Western Europe, under long-term net leases with built-in rent escalations.

About COPT Defense Properties

COPT Defense Properties is a real estate investment trust. It acquires, develops, manages, sells, and leases out office properties and data centers. The firm operates through the following segments: Defense/Information Technology Locations, Regional Office, Wholesale Data Center, and Other. The company was founded on January 22,1988 and is headquartered in Columbia, MD.