Healthpeak Properties (NYSE:DOC) and Brandywine Realty Trust (NYSE:BDN) Critical Analysis

Healthpeak Properties (NYSE:DOC) and Brandywine Realty Trust (NYSE:BDN) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthpeak Properties	0	6	7	1	2.64
Brandywine Realty Trust	0	2	2	0	2.50

Healthpeak Properties presently has a consensus target price of $19.41, suggesting a potential downside of 0.62%. Brandywine Realty Trust has a consensus target price of $5.63, suggesting a potential upside of 24.72%. Given Brandywine Realty Trust’s higher probable upside, analysts plainly believe Brandywine Realty Trust is more favorable than Healthpeak Properties.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Healthpeak Properties	8.56%	2.54%	1.15%
Brandywine Realty Trust	-40.61%	-14.62%	-5.42%

Dividends

Healthpeak Properties pays an annual dividend of $1.20 per share and has a dividend yield of 6.1%. Brandywine Realty Trust pays an annual dividend of $0.60 per share and has a dividend yield of 13.3%. Healthpeak Properties pays out 342.9% 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 -49.2% 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.

Valuation & Earnings

This table compares Healthpeak Properties and Brandywine Realty Trust’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthpeak Properties	$2.18 billion	6.30	$306.01 million	$0.35	55.80
Brandywine Realty Trust	$514.65 million	1.51	-$196.79 million	($1.22)	-3.70

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

Insider & Institutional Ownership

93.6% of Healthpeak Properties shares are held by institutional investors. Comparatively, 87.3% of Brandywine Realty Trust shares are held by institutional investors. 0.3% of Healthpeak Properties shares are held by company insiders. Comparatively, 2.6% of Brandywine Realty Trust shares are held by company 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.

Risk & Volatility

Healthpeak Properties has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Brandywine Realty Trust has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.

Summary

Healthpeak Properties beats Brandywine Realty Trust on 12 of the 17 factors compared between the two stocks.

About Healthpeak Properties

Healthpeak Properties, Inc. is a fully integrated real estate investment trust (REIT) and S&P 500 company. Healthpeak owns, operates, and develops high-quality real estate for healthcare discovery and delivery.

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.