Head-To-Head Contrast: Orion Office REIT (NYSE:ONL) and PotlatchDeltic (NASDAQ:PCH)

Orion Office REIT (NYSE:ONL – Get Rating) and PotlatchDeltic (NASDAQ:PCH – Get Rating) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, profitability, institutional ownership and valuation.

Institutional and Insider Ownership

84.3% of Orion Office REIT shares are owned by institutional investors. Comparatively, 80.4% of PotlatchDeltic shares are owned by institutional investors. 0.2% of Orion Office REIT shares are owned by company insiders. Comparatively, 2.0% of PotlatchDeltic shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Orion Office REIT has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, PotlatchDeltic has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.

Profitability

This table compares Orion Office REIT and PotlatchDeltic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orion Office REIT	-47.04%	-9.66%	-5.98%
PotlatchDeltic	15.82%	8.87%	5.68%

Earnings and Valuation

This table compares Orion Office REIT and PotlatchDeltic’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orion Office REIT	$208.12 million	1.48	-$97.49 million	($1.70)	-3.19
PotlatchDeltic	$1.33 billion	2.73	$333.90 million	$2.61	17.44

PotlatchDeltic has higher revenue and earnings than Orion Office REIT. Orion Office REIT is trading at a lower price-to-earnings ratio than PotlatchDeltic, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Orion Office REIT and PotlatchDeltic, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orion Office REIT	0	1	1	0	2.50
PotlatchDeltic	0	2	3	1	2.83

Orion Office REIT currently has a consensus price target of $10.00, indicating a potential upside of 84.16%. PotlatchDeltic has a consensus price target of $55.40, indicating a potential upside of 21.68%. Given Orion Office REIT’s higher possible upside, analysts plainly believe Orion Office REIT is more favorable than PotlatchDeltic.

Dividends

Orion Office REIT pays an annual dividend of $0.40 per share and has a dividend yield of 7.4%. PotlatchDeltic pays an annual dividend of $1.80 per share and has a dividend yield of 4.0%. Orion Office REIT pays out -23.5% of its earnings in the form of a dividend. PotlatchDeltic pays out 69.0% 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. PotlatchDeltic has raised its dividend for 3 consecutive years. Orion Office REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

PotlatchDeltic beats Orion Office REIT on 14 of the 18 factors compared between the two stocks.

About Orion Office REIT

(Get Rating)

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.

About PotlatchDeltic

(Get Rating)

PotlatchDeltic Corp. operates as a real estate investment trust, which engages in the ownership and management of acres of timberlands. It operates through the following segments: Timberlands, Wood Products, and Real Estate. The Timberland segment includes delivering logs, pulpwood, sawlogs, and stumpage. The Wood Products segment produces and trades lumber, plywood and residuals. The Real Estate segment is involved in marketing and selling land holdings. The company was founded in 1903 and is headquartered in Spokane, WA.