Reviewing Brandywine Realty Trust (NYSE:BDN) & Easterly Government Properties (NYSE:DEA)

Easterly Government Properties (NYSE:DEA) and Brandywine Realty Trust (NYSE:BDN) are both small-cap real estate companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Easterly Government Properties	2.86%	0.75%	0.30%
Brandywine Realty Trust	-28.62%	-18.52%	-4.07%

Earnings & Valuation

This table compares Easterly Government Properties and Brandywine Realty Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Easterly Government Properties	$336.10 million	3.51	$13.00 million	$0.21	118.74
Brandywine Realty Trust	$484.45 million	1.16	-$178.25 million	($0.82)	-3.92

Easterly Government Properties has higher earnings, but lower revenue than Brandywine Realty Trust. Brandywine Realty Trust 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.

Risk and Volatility

Easterly Government Properties has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Brandywine Realty Trust has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500.

Dividends

Easterly Government Properties pays an annual dividend of $1.80 per share and has a dividend yield of 7.2%. Brandywine Realty Trust pays an annual dividend of $0.32 per share and has a dividend yield of 10.0%. Easterly Government Properties pays out 857.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brandywine Realty Trust pays out -39.0% of its earnings in the form of a dividend. Brandywine Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

86.5% of Easterly Government Properties shares are held by institutional investors. Comparatively, 87.3% of Brandywine Realty Trust shares are held by institutional investors. 6.5% of Easterly Government Properties shares are held by insiders. Comparatively, 4.5% of Brandywine Realty Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Easterly Government Properties and Brandywine Realty Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Easterly Government Properties	1	4	1	0	2.00
Brandywine Realty Trust	3	3	0	0	1.50

Easterly Government Properties currently has a consensus price target of $24.07, indicating a potential downside of 3.45%. Brandywine Realty Trust has a consensus price target of $3.50, indicating a potential upside of 8.86%. Given Brandywine Realty Trust’s higher probable upside, analysts plainly believe Brandywine Realty Trust is more favorable than Easterly Government Properties.

Summary

Easterly Government Properties beats Brandywine Realty Trust on 10 of the 16 factors compared between the two stocks.

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).

About Brandywine Realty Trust

Brandywine Realty Trust (NYSE: BDN) is one of the largest, publicly traded, full-service, integrated real estate companies in the United States with a core focus in the Philadelphia and Austin markets. Organized as a real estate investment trust (REIT), we own, develop, lease and manage an urban, town center and transit-oriented portfolio comprising 160 properties and 22.6 million square feet as of September 30, 2023 which excludes assets held for sale. Our purpose is to shape, connect and inspire the world around us through our expertise, the relationships we foster, the communities in which we live and work, and the history we build together.