Orion Office REIT (NYSE:ONL – Get Free Report) and Douglas Emmett (NYSE:DEI – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.
Insider & Institutional Ownership
80.0% of Orion Office REIT shares are owned by institutional investors. Comparatively, 97.4% of Douglas Emmett shares are owned by institutional investors. 0.4% of Orion Office REIT shares are owned by company insiders. Comparatively, 14.7% of Douglas Emmett shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Orion Office REIT and Douglas Emmett, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Orion Office REIT | 0 | 1 | 0 | 0 | 2.00 |
| Douglas Emmett | 0 | 5 | 2 | 0 | 2.29 |
Profitability
This table compares Orion Office REIT and Douglas Emmett’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Orion Office REIT | -50.76% | -10.28% | -6.26% |
| Douglas Emmett | -1.68% | -0.43% | -0.17% |
Risk & Volatility
Orion Office REIT has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Douglas Emmett has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.
Earnings & Valuation
This table compares Orion Office REIT and Douglas Emmett”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Orion Office REIT | $195.04 million | 1.20 | -$57.30 million | ($1.54) | -2.73 |
| Douglas Emmett | $1.02 billion | 3.21 | -$42.71 million | ($0.10) | -195.80 |
Douglas Emmett has higher revenue and earnings than Orion Office REIT. Douglas Emmett is trading at a lower price-to-earnings ratio than Orion Office REIT, indicating that it is currently the more affordable of the two stocks.
Dividends
Orion Office REIT pays an annual dividend of $0.40 per share and has a dividend yield of 9.5%. Douglas Emmett pays an annual dividend of $0.76 per share and has a dividend yield of 3.9%. Orion Office REIT pays out -26.0% of its earnings in the form of a dividend. Douglas Emmett pays out -760.0% 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.
Summary
Douglas Emmett beats Orion Office REIT on 14 of the 16 factors compared between the two stocks.
About Orion Office REIT
Orion Office REIT specializes in the ownership, acquisition and management of a diversified portfolio of mission-critical and corporate headquarters office buildings in high-quality suburban markets across the U.S. The portfolio is leased primarily on a single-tenant net lease basis to creditworthy tenants. The company's team of experienced industry leaders employs a proven, cycle-tested investment evaluation framework which serves as the lens through which capital allocation decisions are made for the current portfolio and future acquisitions.
About Douglas Emmett
Douglas Emmett, Inc. (DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities.
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