Head to Head Comparison: Centerspace (NYSE:CSR) versus Highwoods Properties (NYSE:HIW)

Highwoods Properties (NYSE:HIW) and Centerspace (NYSE:CSR) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.

Profitability

This table compares Highwoods Properties and Centerspace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Highwoods Properties	15.78%	5.44%	2.18%
Centerspace	-2.38%	-0.73%	-0.32%

Insider & Institutional Ownership

96.3% of Highwoods Properties shares are held by institutional investors. Comparatively, 79.0% of Centerspace shares are held by institutional investors. 1.8% of Highwoods Properties shares are held by company insiders. Comparatively, 0.9% of Centerspace shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Highwoods Properties has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500. Comparatively, Centerspace has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Highwoods Properties and Centerspace, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Highwoods Properties	1	5	2	0	2.13
Centerspace	0	3	3	0	2.50

Highwoods Properties currently has a consensus price target of $24.75, suggesting a potential downside of 10.52%. Centerspace has a consensus price target of $67.57, suggesting a potential downside of 3.37%. Given Centerspace’s stronger consensus rating and higher possible upside, analysts clearly believe Centerspace is more favorable than Highwoods Properties.

Dividends

Highwoods Properties pays an annual dividend of $2.00 per share and has a dividend yield of 7.2%. Centerspace pays an annual dividend of $3.00 per share and has a dividend yield of 4.3%. Highwoods Properties pays out 163.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Centerspace pays out -375.0% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Highwoods Properties and Centerspace’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Highwoods Properties	$834.00 million	3.52	$148.71 million	$1.22	22.67
Centerspace	$257.92 million	4.04	$41.97 million	($0.80)	-87.41

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

Summary

Highwoods Properties beats Centerspace on 11 of the 16 factors compared between the two stocks.

About Highwoods Properties

Highwoods Properties, Inc., headquartered in Raleigh, is a publicly-traded (NYSE:HIW), fully-integrated office real estate investment trust (REIT) that owns, develops, acquires, leases and manages properties primarily in the best business districts (BBDs) of Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond and Tampa. Highwoods is in the work-placemaking business. We believe that by creating environments and experiences where the best and brightest can achieve together what they cannot apart, we can deliver greater value to our customers, their teammates and, in turn, our stakeholders.

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.