Peakstone Realty Trust (NYSE:PKST) and Centerspace (NYSE:CSR) Financial Analysis

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Centerspace and Peakstone Realty Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Centerspace	0	4	2	0	2.33
Peakstone Realty Trust	0	1	0	0	2.00

Centerspace currently has a consensus price target of $75.33, suggesting a potential upside of 14.12%. Peakstone Realty Trust has a consensus price target of $15.00, suggesting a potential upside of 31.81%. Given Peakstone Realty Trust’s higher probable upside, analysts plainly believe Peakstone Realty Trust is more favorable than Centerspace.

Earnings & Valuation

This table compares Centerspace and Peakstone Realty Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Centerspace	$258.64 million	4.23	$41.97 million	($1.61)	-41.00
Peakstone Realty Trust	$233.20 million	1.78	-$550.58 million	($1.18)	-9.64

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.

Institutional and Insider Ownership

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

Volatility and Risk

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

Profitability

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

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

Dividends

Centerspace pays an annual dividend of $3.00 per share and has a dividend yield of 4.5%. Peakstone Realty Trust pays an annual dividend of $0.90 per share and has a dividend yield of 7.9%. Centerspace pays out -186.3% of its earnings in the form of a dividend. Peakstone Realty Trust pays out -76.3% 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.

Summary

Centerspace beats Peakstone Realty Trust on 11 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 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.