Comparing Easterly Government Properties (NYSE:DEA) & Empire State Realty Trust (NYSE:ESRT)

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

Risk & Volatility

Easterly Government Properties has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, Empire State Realty Trust has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Easterly Government Properties and Empire State Realty Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Easterly Government Properties 1 4 2 0 2.14
Empire State Realty Trust 2 1 0 0 1.33

Easterly Government Properties presently has a consensus price target of $25.06, suggesting a potential upside of 10.09%. Empire State Realty Trust has a consensus price target of $5.00, suggesting a potential upside of 23.00%. Given Empire State Realty Trust’s higher possible upside, analysts plainly believe Empire State Realty Trust is more favorable than Easterly Government Properties.

Dividends

Easterly Government Properties pays an annual dividend of $1.80 per share and has a dividend yield of 7.9%. Empire State Realty Trust pays an annual dividend of $0.14 per share and has a dividend yield of 3.4%. 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. Empire State Realty Trust pays out 200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares Easterly Government Properties and Empire State Realty Trust”s gross 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 3.21 $13.00 million $0.21 108.41
Empire State Realty Trust $768.27 million 0.92 $47.60 million $0.07 58.07

Empire State Realty Trust has higher revenue and earnings than Easterly Government Properties. Empire State 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.

Insider & Institutional Ownership

86.5% of Easterly Government Properties shares are held by institutional investors. Comparatively, 67.1% of Empire State Realty Trust shares are held by institutional investors. 6.5% of Easterly Government Properties shares are held by insiders. Comparatively, 15.2% of Empire State Realty Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Easterly Government Properties and Empire State 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%
Empire State Realty Trust 0.93% 0.40% 0.17%

Summary

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

About Easterly Government Properties

(Get Free Report)

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 Empire State Realty Trust

(Get Free Report)

Empire State Realty Trust, Inc. (NYSE: ESRT) is a NYC-focused REIT that owns and operates a portfolio of modernized, amenitized, and well-located office, retail, and multifamily assets. The company is the recognized leader in energy efficiency and indoor environmental quality. ESRT’s flagship Empire State Building – the “World’s Most Famous Building” – includes its Observatory, Tripadvisor’s 2023 Travelers’ Choice Awards: Best of the Best the #1 attraction in the US for two consecutive years. As of September 30, 2023, ESRT’s portfolio is comprised of approximately 8.6 million rentable square feet of office space, 0.7 million rentable square feet of retail space and 727 residential units across three multifamily properties.

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