Peakstone Realty Trust (NYSE:PKST – Get Free Report) and Centerspace (NYSE:CSR – Get Free Report) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitability and risk.
Volatility and Risk
Peakstone Realty Trust has a beta of 2.51, indicating that its share price is 151% more volatile than the S&P 500. Comparatively, Centerspace has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and target prices for Peakstone Realty Trust and Centerspace, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Peakstone Realty Trust | 0 | 1 | 0 | 0 | 2.00 |
Centerspace | 0 | 4 | 2 | 0 | 2.33 |
Peakstone Realty Trust currently has a consensus price target of $15.00, indicating a potential upside of 32.28%. Centerspace has a consensus price target of $75.33, indicating a potential upside of 14.09%. Given Peakstone Realty Trust’s higher probable upside, analysts clearly believe Peakstone Realty Trust is more favorable than Centerspace.
Dividends
Peakstone Realty Trust pays an annual dividend of $0.90 per share and has a dividend yield of 7.9%. Centerspace pays an annual dividend of $3.00 per share and has a dividend yield of 4.5%. Peakstone Realty Trust pays out -76.3% of its earnings in the form of a dividend. Centerspace pays out -186.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Insider & Institutional Ownership
39.0% of Peakstone Realty Trust shares are held by institutional investors. Comparatively, 79.0% of Centerspace shares are held by institutional investors. 0.5% of Peakstone Realty Trust shares are held by company insiders. Comparatively, 0.9% of Centerspace shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Peakstone Realty Trust and Centerspace”s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Peakstone Realty Trust | $233.20 million | 1.77 | -$550.58 million | ($1.18) | -9.61 |
Centerspace | $258.64 million | 4.23 | $41.97 million | ($1.61) | -41.01 |
Centerspace has higher revenue and earnings than Peakstone Realty Trust. Centerspace is trading at a lower price-to-earnings ratio than Peakstone Realty Trust, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Peakstone Realty Trust and Centerspace’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Peakstone Realty Trust | -18.26% | -3.61% | -1.59% |
Centerspace | -5.57% | -1.72% | -0.76% |
Summary
Centerspace beats Peakstone Realty Trust on 11 of the 16 factors compared between the two stocks.
About Peakstone Realty Trust
Peakstone Realty Trust (NYSE: PKST) is an internally managed, real estate investment trust (REIT) that owns and operates a high-quality, newer-vintage portfolio of predominantly single-tenant industrial and office properties. These assets are generally leased to creditworthy tenants under long-term net lease agreements with contractual rent escalations. As of March 31, 2023, Peakstone’s wholly-owned portfolio consists of 19 million square feet across 24 states in primarily high-growth, strategic coastal and sunbelt markets.
About Centerspace
Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, as of September 30, 2023, Centerspace owned interests in 71 apartment communities consisting of 12,785 apartment homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a Top Workplace for the fourth consecutive year in 2023 by the Minneapolis Star Tribune.
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