Head to Head Comparison: Paramount Group (NYSE:PGRE) vs. Allied Properties Real Estate Investment Trust (OTCMKTS:APYRF)

Allied Properties Real Estate Investment Trust (OTCMKTS:APYRF) and Paramount Group (NYSE:PGRE) are both real estate companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.

Institutional and Insider Ownership

45.4% of Allied Properties Real Estate Investment Trust shares are held by institutional investors. Comparatively, 65.6% of Paramount Group shares are held by institutional investors. 13.5% of Paramount Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Allied Properties Real Estate Investment Trust and Paramount Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allied Properties Real Estate Investment Trust	N/A	N/A	N/A
Paramount Group	-33.85%	-6.01%	-3.09%

Dividends

Allied Properties Real Estate Investment Trust pays an annual dividend of $1.06 per share and has a dividend yield of 8.4%. Paramount Group pays an annual dividend of $0.14 per share and has a dividend yield of 2.9%. Allied Properties Real Estate Investment Trust pays out 52.1% of its earnings in the form of a dividend. Paramount Group pays out -12.1% 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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Allied Properties Real Estate Investment Trust and Paramount Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allied Properties Real Estate Investment Trust	0	0	0	0	N/A
Paramount Group	2	2	1	0	1.80

Allied Properties Real Estate Investment Trust presently has a consensus price target of $48.50, indicating a potential upside of 285.53%. Paramount Group has a consensus price target of $4.60, indicating a potential downside of 5.35%. Given Allied Properties Real Estate Investment Trust’s higher probable upside, equities analysts plainly believe Allied Properties Real Estate Investment Trust is more favorable than Paramount Group.

Earnings and Valuation

This table compares Allied Properties Real Estate Investment Trust and Paramount Group’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allied Properties Real Estate Investment Trust	N/A	N/A	N/A	$2.03	6.20
Paramount Group	$742.79 million	1.42	-$259.74 million	($1.16)	-4.19

Allied Properties Real Estate Investment Trust has higher earnings, but lower revenue than Paramount Group. Paramount Group is trading at a lower price-to-earnings ratio than Allied Properties Real Estate Investment Trust, indicating that it is currently the more affordable of the two stocks.

Summary

Allied Properties Real Estate Investment Trust beats Paramount Group on 7 of the 12 factors compared between the two stocks.

About Allied Properties Real Estate Investment Trust

Allied is a leading owner-operator of distinctive urban workspace in Canada's major cities. Allied's mission is to provide knowledge-based organizations with workspace that is sustainable and conducive to human wellness, creativity, connectivity and diversity. Allied's vision is to make a continuous contribution to cities and culture that elevates and inspires the humanity in all people.

About Paramount Group

Paramount Group, Inc. ("Paramount" or the "Company") is a fully-integrated real estate investment trust that owns, operates, manages, acquires and redevelops high-quality, Class A office properties located in select central business district submarkets of New York and San Francisco. Paramount is focused on maximizing the value of its portfolio by leveraging the sought-after locations of its assets and its proven property management capabilities to attract and retain high-quality tenants.