Corporate Office Properties Trust (OFC) versus American Campus Communities (ACC) Head-To-Head Review

Corporate Office Properties Trust (NYSE: OFC) and American Campus Communities (NYSE:ACC) are both mid-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, valuation and institutional ownership.

Risk and Volatility

Corporate Office Properties Trust has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, American Campus Communities has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Corporate Office Properties Trust and American Campus Communities, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Corporate Office Properties Trust 1 8 2 0 2.09
American Campus Communities 1 4 10 0 2.60

Corporate Office Properties Trust currently has a consensus target price of $29.57, suggesting a potential upside of 11.13%. American Campus Communities has a consensus target price of $47.23, suggesting a potential upside of 26.93%. Given American Campus Communities’ stronger consensus rating and higher probable upside, analysts plainly believe American Campus Communities is more favorable than Corporate Office Properties Trust.

Earnings & Valuation

This table compares Corporate Office Properties Trust and American Campus Communities’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Corporate Office Properties Trust $612.82 million 4.44 $70.09 million $2.03 13.11
American Campus Communities $796.45 million 6.38 $69.03 million $2.31 16.11

Corporate Office Properties Trust has higher earnings, but lower revenue than American Campus Communities. Corporate Office Properties Trust is trading at a lower price-to-earnings ratio than American Campus Communities, indicating that it is currently the more affordable of the two stocks.

Dividends

Corporate Office Properties Trust pays an annual dividend of $1.10 per share and has a dividend yield of 4.1%. American Campus Communities pays an annual dividend of $1.84 per share and has a dividend yield of 4.9%. Corporate Office Properties Trust pays out 54.2% of its earnings in the form of a dividend. American Campus Communities pays out 79.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Campus Communities has raised its dividend for 5 consecutive years. American Campus Communities is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Corporate Office Properties Trust and American Campus Communities’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Corporate Office Properties Trust 10.48% 4.49% 1.81%
American Campus Communities 7.39% 1.73% 0.91%

Summary

American Campus Communities beats Corporate Office Properties Trust on 9 of the 15 factors compared between the two stocks.

About Corporate Office Properties Trust

COPT is an office REIT that owns, manages, leases, develops and selectively acquires office and data center properties in locations that support the United States Government and its contractors, most of whom are engaged in national security, defense and information technology (?IT?) related activities servicing what it believes are growing, durable, priority missions (?Defense/IT Locations?). The Company also owns a portfolio of office properties located in select urban/urban-like submarkets in the Greater Washington, DC/Baltimore region with durable Class-A office fundamentals and characteristics (?Regional Office Properties?). As of December 31, 2017, the Company derived 88% of core portfolio annualized revenue from Defense/IT Locations and 12% from its Regional Office Properties. As of December 31, 2017 and including six buildings owned through an unconsolidated joint venture, COPT's core portfolio of 156 office and data center shell properties encompassed 17.1 million square feet and was 95.1% leased. As of the same date, the Company also owned one wholesale data center with a critical load of 19.25 megawatts.

About American Campus Communities

American Campus Communities, Inc. is the largest owner, manager and developer of high-quality student housing communities in the United States. The company is a fully integrated, self-managed and self-administered equity real estate investment trust (REIT) with expertise in the design, finance, development, construction management and operational management of student housing properties. As of December 31, 2017, American Campus Communities owned 169 student housing properties containing approximately 104,100 beds. Including its owned and third-party managed properties, ACC's total managed portfolio consisted of 206 properties with approximately 134,100 beds. Visit www.americancampus.com.

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