Reviewing Orion Office REIT (NYSE:ONL) & Dream Office Real Estate Investment Trust (OTCMKTS:DRETF)

Dream Office Real Estate Investment Trust (OTCMKTS:DRETFGet Free Report) and Orion Office REIT (NYSE:ONLGet Free Report) are both real estate companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Valuation & Earnings

This table compares Dream Office Real Estate Investment Trust and Orion Office REIT’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dream Office Real Estate Investment Trust N/A N/A N/A $2.06 5.59
Orion Office REIT $195.04 million 1.00 -$57.30 million ($1.02) -3.44

Dream Office Real Estate Investment Trust has higher earnings, but lower revenue than Orion Office REIT. Orion Office REIT is trading at a lower price-to-earnings ratio than Dream Office Real Estate Investment Trust, indicating that it is currently the more affordable of the two stocks.

Dividends

Dream Office Real Estate Investment Trust pays an annual dividend of $2.05 per share and has a dividend yield of 17.9%. Orion Office REIT pays an annual dividend of $0.40 per share and has a dividend yield of 11.4%. Dream Office Real Estate Investment Trust pays out 99.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Orion Office REIT pays out -39.2% of its earnings in the form of a dividend.

Profitability

This table compares Dream Office Real Estate Investment Trust and Orion Office REIT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dream Office Real Estate Investment Trust N/A N/A N/A
Orion Office REIT -29.38% -6.20% -3.82%

Insider & Institutional Ownership

24.9% of Dream Office Real Estate Investment Trust shares are owned by institutional investors. Comparatively, 80.0% of Orion Office REIT shares are owned by institutional investors. 0.2% of Orion Office REIT shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Dream Office Real Estate Investment Trust and Orion Office REIT, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dream Office Real Estate Investment Trust 0 4 1 0 2.20
Orion Office REIT 0 0 0 0 N/A

Dream Office Real Estate Investment Trust currently has a consensus price target of $25.06, suggesting a potential upside of 117.93%. Given Dream Office Real Estate Investment Trust’s higher possible upside, research analysts clearly believe Dream Office Real Estate Investment Trust is more favorable than Orion Office REIT.

Summary

Dream Office Real Estate Investment Trust beats Orion Office REIT on 8 of the 12 factors compared between the two stocks.

About Dream Office Real Estate Investment Trust

(Get Free Report)

Dream Office REIT is an unincorporated, open-ended real estate investment trust. Dream Office REIT is a premier office landlord in downtown Toronto with over 3.5 million square feet owned and managed. We have carefully curated an investment portfolio of high-quality assets in irreplaceable locations in one of the finest office markets in the world.

About Orion Office REIT

(Get Free Report)

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.

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