Centerspace (NYSE:CSR) vs. Peakstone Realty Trust (NYSE:PKST) Critical Analysis

Peakstone Realty Trust (NYSE:PKST) and Centerspace (NYSE:CSR) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.

Risk and Volatility

Peakstone Realty Trust has a beta of 2.5, suggesting that its stock price is 150% more volatile than the S&P 500. Comparatively, Centerspace has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.

Profitability

This table compares Peakstone Realty Trust and Centerspace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Peakstone Realty Trust	-18.26%	-3.61%	-1.59%
Centerspace	-5.57%	-1.72%	-0.76%

Institutional & Insider Ownership

39.0% of Peakstone Realty Trust shares are owned by institutional investors. Comparatively, 79.0% of Centerspace shares are owned by institutional investors. 0.5% of Peakstone Realty Trust shares are owned by insiders. Comparatively, 0.9% of Centerspace shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Peakstone Realty Trust pays an annual dividend of $0.90 per share and has a dividend yield of 6.8%. Centerspace pays an annual dividend of $3.00 per share and has a dividend yield of 4.3%. Peakstone Realty Trust pays out -76.3% of its earnings in the form of a dividend. Centerspace pays out -186.3% 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.

Valuation and Earnings

This table compares Peakstone Realty Trust 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
Peakstone Realty Trust	$254.28 million	1.88	-$550.58 million	($1.18)	-11.14
Centerspace	$258.64 million	4.45	$41.97 million	($1.61)	-43.12

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Peakstone Realty Trust and Centerspace, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peakstone Realty Trust	0	1	0	0	2.00
Centerspace	0	3	2	0	2.40

Peakstone Realty Trust presently has a consensus price target of $15.00, suggesting a potential upside of 14.07%. Centerspace has a consensus price target of $76.00, suggesting a potential upside of 9.46%. Given Peakstone Realty Trust’s higher possible upside, analysts clearly believe Peakstone Realty Trust is more favorable than Centerspace.

Summary

Centerspace beats Peakstone Realty Trust on 11 of the 16 factors compared between the two stocks.

About Peakstone Realty Trust

Peakstone Realty Trust (NYSE: PKST) is an internally managed, real estate investment trust (REIT) that owns and operates a high-quality, newer-vintage portfolio of predominantly single-tenant industrial and office properties. These assets are generally leased to creditworthy tenants under long-term net lease agreements with contractual rent escalations. As of March 31, 2023, Peakstone's wholly-owned portfolio consists of 19 million square feet across 24 states in primarily high-growth, strategic coastal and sunbelt markets.

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.