Contrasting Centerspace (NYSE:CSR) and Easterly Government Properties (NYSE:DEA)

Centerspace (NYSE:CSR) and Easterly Government Properties (NYSE:DEA) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.

Profitability

This table compares Centerspace and Easterly Government Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Centerspace	-4.34%	-1.34%	-0.60%
Easterly Government Properties	6.25%	1.34%	0.62%

Institutional and Insider Ownership

79.0% of Centerspace shares are held by institutional investors. Comparatively, 86.5% of Easterly Government Properties shares are held by institutional investors. 0.9% of Centerspace shares are held by insiders. Comparatively, 8.1% of Easterly Government Properties shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Centerspace pays an annual dividend of $3.08 per share and has a dividend yield of 4.7%. Easterly Government Properties pays an annual dividend of $1.06 per share and has a dividend yield of 9.5%. Centerspace pays out -242.5% of its earnings in the form of a dividend. Easterly Government Properties pays out 557.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility and Risk

Centerspace has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Easterly Government Properties has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Centerspace and Easterly Government Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Centerspace	0	4	3	0	2.43
Easterly Government Properties	0	1	1	0	2.50

Centerspace presently has a consensus target price of $74.43, indicating a potential upside of 13.58%. Easterly Government Properties has a consensus target price of $12.50, indicating a potential upside of 12.16%. Given Centerspace’s higher possible upside, equities analysts clearly believe Centerspace is more favorable than Easterly Government Properties.

Earnings and Valuation

This table compares Centerspace and Easterly Government Properties”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Centerspace	$260.98 million	4.20	$41.97 million	($1.27)	-51.60
Easterly Government Properties	$302.05 million	3.98	$18.80 million	$0.19	58.66

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

Summary

Easterly Government Properties beats Centerspace on 10 of the 16 factors compared between the two stocks.

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.

About Easterly Government Properties

Easterly Government Properties, Inc. (NYSE: DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. Easterly’s experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased to such agencies either directly or through the U.S. General Services Administration (GSA).