Analyzing Brandywine Realty Trust (NYSE:BDN) & EPR Properties (NYSE:EPR)

EPR Properties (NYSE:EPR) and Brandywine Realty Trust (NYSE:BDN) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.

Risk & Volatility

EPR Properties has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500. Comparatively, Brandywine Realty Trust has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.

Insider & Institutional Ownership

74.7% of EPR Properties shares are owned by institutional investors. Comparatively, 87.3% of Brandywine Realty Trust shares are owned by institutional investors. 2.1% of EPR Properties shares are owned by insiders. Comparatively, 2.6% of Brandywine Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

EPR Properties pays an annual dividend of $3.42 per share and has a dividend yield of 7.6%. Brandywine Realty Trust pays an annual dividend of $0.60 per share and has a dividend yield of 10.5%. EPR Properties pays out 148.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brandywine Realty Trust pays out -33.3% of its earnings in the form of a dividend. Brandywine Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares EPR Properties and Brandywine Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EPR Properties	28.87%	8.22%	3.52%
Brandywine Realty Trust	-60.08%	-24.59%	-8.33%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for EPR Properties and Brandywine Realty Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EPR Properties	2	4	3	1	2.30
Brandywine Realty Trust	0	2	1	0	2.33

EPR Properties currently has a consensus target price of $48.28, indicating a potential upside of 7.00%. Brandywine Realty Trust has a consensus target price of $5.83, indicating a potential upside of 1.98%. Given EPR Properties’ higher probable upside, analysts clearly believe EPR Properties is more favorable than Brandywine Realty Trust.

Earnings and Valuation

This table compares EPR Properties and Brandywine Realty Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EPR Properties	$636.87 million	5.37	$173.05 million	$2.31	19.53
Brandywine Realty Trust	$513.78 million	1.92	-$196.79 million	($1.80)	-3.18

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

Summary

EPR Properties beats Brandywine Realty Trust on 12 of the 17 factors compared between the two stocks.

About EPR Properties

EPR Properties (NYSE:EPR) is the leading diversified experiential net lease real estate investment trust (REIT), specializing in select enduring experiential properties in the real estate industry. We focus on real estate venues that create value by facilitating out of home leisure and recreation experiences where consumers choose to spend their discretionary time and money. We have total assets of approximately $5.7 billion (after accumulated depreciation of approximately $1.4 billion) across 44 states. We adhere to rigorous underwriting and investing criteria centered on key industry, property and tenant level cash flow standards. We believe our focused approach provides a competitive advantage and the potential for stable and attractive returns.

About Brandywine Realty Trust

Brandywine Realty Trust (NYSE: BDN) is one of the largest, publicly traded, full-service, integrated real estate companies in the United States with a core focus in the Philadelphia and Austin markets. Organized as a real estate investment trust (REIT), we own, develop, lease and manage an urban, town center and transit-oriented portfolio comprising 160 properties and 22.6 million square feet as of September 30, 2023 which excludes assets held for sale. Our purpose is to shape, connect and inspire the world around us through our expertise, the relationships we foster, the communities in which we live and work, and the history we build together.