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

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

Earnings and Valuation

This table compares Brandywine Realty Trust and EPR Properties”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brandywine Realty Trust	$513.78 million	1.81	-$196.79 million	($1.80)	-2.99
EPR Properties	$636.87 million	5.18	$173.05 million	$2.31	18.87

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

Insider & Institutional Ownership

87.3% of Brandywine Realty Trust shares are owned by institutional investors. Comparatively, 74.7% of EPR Properties shares are owned by institutional investors. 2.6% of Brandywine Realty Trust shares are owned by company insiders. Comparatively, 2.1% of EPR Properties shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Brandywine Realty Trust	-60.08%	-24.59%	-8.33%
EPR Properties	28.87%	8.22%	3.52%

Analyst Ratings

This is a breakdown of current recommendations for Brandywine Realty Trust and EPR Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brandywine Realty Trust	0	2	1	0	2.33
EPR Properties	2	4	3	1	2.30

Brandywine Realty Trust currently has a consensus target price of $5.83, indicating a potential upside of 8.23%. EPR Properties has a consensus target price of $48.28, indicating a potential upside of 10.75%. Given EPR Properties’ higher probable upside, analysts plainly believe EPR Properties is more favorable than Brandywine Realty Trust.

Dividends

Brandywine Realty Trust pays an annual dividend of $0.60 per share and has a dividend yield of 11.1%. EPR Properties pays an annual dividend of $3.42 per share and has a dividend yield of 7.8%. Brandywine Realty Trust pays out -33.3% of its earnings in the form of a dividend. EPR Properties pays out 148.1% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

Brandywine Realty Trust has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500. Comparatively, EPR Properties has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500.

Summary

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

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.

About EPR Properties

EPR Properties (NYSE:EPR) is the leading diversified experiential net lease real estate investment trust (REIT), specializing in select enduring experiential properties in the real estate industry. We focus on real estate venues that create value by facilitating out of home leisure and recreation experiences where consumers choose to spend their discretionary time and money. We have total assets of approximately $5.7 billion (after accumulated depreciation of approximately $1.4 billion) across 44 states. We adhere to rigorous underwriting and investing criteria centered on key industry, property and tenant level cash flow standards. We believe our focused approach provides a competitive advantage and the potential for stable and attractive returns.