Reviewing COPT Defense Properties (NYSE:CDP) and Essential Properties Realty Trust (NYSE:EPRT)

COPT Defense Properties (NYSE:CDPGet Free Report) and Essential Properties Realty Trust (NYSE:EPRTGet Free Report) are both mid-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Analyst Ratings

This is a summary of current ratings and price targets for COPT Defense Properties and Essential Properties Realty Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
COPT Defense Properties 0 3 4 0 2.57
Essential Properties Realty Trust 0 0 9 0 3.00

COPT Defense Properties currently has a consensus target price of $27.00, indicating a potential upside of 12.27%. Essential Properties Realty Trust has a consensus target price of $28.56, indicating a potential upside of 6.23%. Given COPT Defense Properties’ higher probable upside, research analysts plainly believe COPT Defense Properties is more favorable than Essential Properties Realty Trust.

Insider and Institutional Ownership

97.0% of Essential Properties Realty Trust shares are owned by institutional investors. 1.1% of COPT Defense Properties shares are owned by insiders. Comparatively, 0.8% of Essential Properties Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

COPT Defense Properties has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, Essential Properties Realty Trust has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.

Profitability

This table compares COPT Defense Properties and Essential Properties Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
COPT Defense Properties -16.83% -7.53% -2.82%
Essential Properties Realty Trust 51.34% 6.56% 4.19%

Dividends

COPT Defense Properties pays an annual dividend of $1.18 per share and has a dividend yield of 4.9%. Essential Properties Realty Trust pays an annual dividend of $1.14 per share and has a dividend yield of 4.2%. COPT Defense Properties pays out -109.3% of its earnings in the form of a dividend. Essential Properties Realty Trust pays out 92.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Essential Properties Realty Trust has increased its dividend for 5 consecutive years. COPT Defense Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares COPT Defense Properties and Essential Properties Realty Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
COPT Defense Properties $684.98 million 3.95 -$73.47 million ($1.08) -22.27
Essential Properties Realty Trust $359.60 million 13.10 $190.71 million $1.23 21.85

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

Summary

Essential Properties Realty Trust beats COPT Defense Properties on 12 of the 17 factors compared between the two stocks.

About COPT Defense Properties

(Get Free Report)

COPT Defense, an S&P MidCap 400 Company, is a self-managed REIT focused on owning, operating and developing properties in locations proximate to, or sometimes containing, key U.S. Government (USG) defense installations and missions (referred to as its Defense/IT Portfolio). The Company's tenants include the USG and their defense contractors, who are primarily engaged in priority national security activities, and who generally require mission-critical and high security property enhancements. As of December 31, 2023, the Company's Defense/IT Portfolio of 190 properties, including 24 owned through unconsolidated joint ventures, encompassed 21.7 million square feet and was 97.2% leased.

About Essential Properties Realty Trust

(Get Free Report)

Essential Properties Realty Trust, Inc., a real estate company, acquires, owns, and manages single-tenant properties in the United States. The company leases its properties to middle-market companies, such as restaurants, car washes, automotive services, medical and dental services, convenience stores, equipment rental, entertainment, early childhood education, grocery, and health and fitness on a long-term basis. As of December 31, 2021, it had a portfolio of 1, 451 properties. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 2016 and is headquartered in Princeton, New Jersey.

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