Terreno Realty (NYSE:TRNO) versus Easterly Government Properties (NYSE:DEA) Head-To-Head Comparison

Terreno Realty (NYSE:TRNO) and Easterly Government Properties (NYSE:DEA) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.

Profitability

This table compares Terreno Realty and Easterly Government Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Terreno Realty	86.44%	10.35%	7.98%
Easterly Government Properties	3.22%	0.82%	0.33%

Earnings and Valuation

This table compares Terreno Realty and Easterly Government Properties”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Terreno Realty	$476.38 million	14.80	$402.99 million	$4.09	16.21
Easterly Government Properties	$336.10 million	3.30	$13.00 million	$0.24	99.44

Terreno Realty has higher revenue and earnings than Easterly Government Properties. Terreno Realty is trading at a lower price-to-earnings ratio than Easterly Government Properties, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations for Terreno Realty and Easterly Government Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Terreno Realty	1	2	8	1	2.75
Easterly Government Properties	2	2	1	0	1.80

Terreno Realty currently has a consensus price target of $69.57, suggesting a potential upside of 4.92%. Easterly Government Properties has a consensus price target of $23.49, suggesting a potential downside of 1.58%. Given Terreno Realty’s stronger consensus rating and higher probable upside, analysts plainly believe Terreno Realty is more favorable than Easterly Government Properties.

Institutional and Insider Ownership

86.5% of Easterly Government Properties shares are held by institutional investors. 1.9% of Terreno Realty shares are held by insiders. Comparatively, 6.5% of Easterly Government Properties shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Terreno Realty has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Easterly Government Properties has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.

Dividends

Terreno Realty pays an annual dividend of $2.08 per share and has a dividend yield of 3.1%. Easterly Government Properties pays an annual dividend of $1.80 per share and has a dividend yield of 7.5%. Terreno Realty pays out 50.9% of its earnings in the form of a dividend. Easterly Government Properties pays out 750.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Terreno Realty has increased its dividend for 5 consecutive years.

Summary

Terreno Realty beats Easterly Government Properties on 14 of the 18 factors compared between the two stocks.

About Terreno Realty

Terreno Realty Corporation (Terreno, and together with its subsidiaries, the Company) acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. All square feet, acres, occupancy and number of properties disclosed in these notes to the consolidated financial statements are unaudited. As of December 31, 2023, the Company owned 259 buildings aggregating approximately 16.0 million square feet, 45 improved land parcels consisting of approximately 152.4 acres, seven properties under development or redevelopment and approximately 62.7 acres of land entitled for future development. The Company is an internally managed Maryland corporation and elected to be taxed as a real estate investment trust (REIT) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the Code), commencing with its taxable year ended December 31, 2010.

About Easterly Government Properties

Easterly Government Properties, Inc. (NYSE: DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. Easterly’s experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased to such agencies either directly or through the U.S. General Services Administration (GSA).