Orion Office REIT (NYSE:ONL – Get Free Report) and Kilroy Realty (NYSE:KRC – Get Free Report) are both real estate companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.
Earnings & Valuation
This table compares Orion Office REIT and Kilroy Realty”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Orion Office REIT | $147.65 million | 0.99 | -$139.31 million | ($1.69) | -1.53 |
| Kilroy Realty | $1.11 billion | 3.63 | $276.12 million | $1.42 | 24.48 |
Institutional & Insider Ownership
79.9% of Orion Office REIT shares are owned by institutional investors. Comparatively, 94.2% of Kilroy Realty shares are owned by institutional investors. 1.6% of Orion Office REIT shares are owned by insiders. Comparatively, 0.8% of Kilroy Realty shares are owned by 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.
Analyst Ratings
This is a summary of current ratings and recommmendations for Orion Office REIT and Kilroy Realty, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Orion Office REIT | 1 | 0 | 1 | 0 | 2.00 |
| Kilroy Realty | 2 | 9 | 5 | 0 | 2.19 |
Orion Office REIT presently has a consensus price target of $3.50, suggesting a potential upside of 35.40%. Kilroy Realty has a consensus price target of $39.47, suggesting a potential upside of 13.53%. Given Orion Office REIT’s higher probable upside, equities research analysts clearly believe Orion Office REIT is more favorable than Kilroy Realty.
Dividends
Orion Office REIT pays an annual dividend of $0.08 per share and has a dividend yield of 3.1%. Kilroy Realty pays an annual dividend of $2.16 per share and has a dividend yield of 6.2%. Orion Office REIT pays out -4.7% of its earnings in the form of a dividend. Kilroy Realty pays out 152.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Risk and Volatility
Orion Office REIT has a beta of 1.58, indicating that its stock price is 58% more volatile than the S&P 500. Comparatively, Kilroy Realty has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.
Profitability
This table compares Orion Office REIT and Kilroy Realty’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Orion Office REIT | -65.66% | -14.85% | -7.95% |
| Kilroy Realty | 15.47% | 3.04% | 1.56% |
Summary
Kilroy Realty beats Orion Office REIT on 12 of the 16 factors compared between the two stocks.
About Orion Office REIT
Orion Office REIT specializes in the ownership, acquisition and management of a diversified portfolio of mission-critical and corporate headquarters office buildings in high-quality suburban markets across the U.S. The portfolio is leased primarily on a single-tenant net lease basis to creditworthy tenants. The company's team of experienced industry leaders employs a proven, cycle-tested investment evaluation framework which serves as the lens through which capital allocation decisions are made for the current portfolio and future acquisitions.
About Kilroy Realty
Kilroy Realty Corporation (NYSE: KRC, the company, Kilroy) is a leading U.S. landlord and developer, with operations in San Diego, Greater Los Angeles, the San Francisco Bay Area, Greater Seattle and Austin. The company has earned global recognition for sustainability, building operations, innovation and design. As a pioneer and innovator in the creation of a more sustainable real estate industry, the company's approach to modern business environments helps drive creativity and productivity for some of the world's leading technology, entertainment, life science and business services companies. The company is a publicly traded real estate investment trust (REIT) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office, life science and mixed-use projects. As of December 31, 2023, Kilroy's stabilized portfolio totaled approximately 17.0 million square feet of primarily office and life science space that was 85.0% occupied and 86.4% leased. The company also had approximately 1,000 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 92.5%. In addition, the company had two in-process life science redevelopment projects totaling approximately 100,000 square feet with total estimated redevelopment costs of $80.0 million and one approximately 875,000 square foot in-process development project with a total estimated investment of $1.0 billion.
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