WallStSmart

COPT Defense Properties (CDP)vsHighwoods Properties Inc (HIW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Highwoods Properties Inc generates 6% more annual revenue ($838.86M vs $788.06M). CDP leads profitability with a 20.8% profit margin vs 20.1%. CDP appears more attractively valued with a PEG of 1.03. CDP earns a higher WallStSmart Score of 66/100 (B-).

CDP

Strong Buy

66

out of 100

Grade: B-

Growth: 5.3Profit: 7.5Value: 6.7Quality: 5.0
Piotroski: 2/9Altman Z: 0.42

HIW

Buy

65

out of 100

Grade: C+

Growth: 6.0Profit: 6.5Value: 6.0Quality: 4.5
Piotroski: 4/9Altman Z: 0.55
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CDPUndervalued (+18.2%)

Margin of Safety

+18.2%

Fair Value

$39.61

Current Price

$35.43

$4.18 discount

UndervaluedFair: $39.61Overvalued
HIWUndervalued (+48.5%)

Margin of Safety

+48.5%

Fair Value

$45.34

Current Price

$30.93

$14.41 discount

UndervaluedFair: $45.34Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CDP3 strengths · Avg: 9.0/10
Operating MarginProfitability
32.2%10/10

Strong operational efficiency at 32.2%

Profit MarginProfitability
20.8%9/10

Keeps 21 of every $100 in revenue as profit

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

HIW4 strengths · Avg: 9.3/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

EPS GrowthGrowth
400.2%10/10

Earnings expanding 400.2% YoY

Profit MarginProfitability
20.1%9/10

Keeps 20 of every $100 in revenue as profit

Operating MarginProfitability
26.3%8/10

Strong operational efficiency at 26.3%

Areas to Watch

CDP4 concerns · Avg: 3.5/10
P/E RatioValuation
25.9x4/10

Moderate valuation

Revenue GrowthGrowth
3.9%4/10

3.9% revenue growth

Debt/EquityHealth
1.753/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

HIW4 concerns · Avg: 2.5/10
Return on EquityProfitability
3.8%3/10

ROE of 3.8% — below average capital efficiency

Debt/EquityHealth
1.473/10

Elevated debt levels

PEG RatioValuation
7.772/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.552/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : CDP

The strongest argument for CDP centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 20.8% and operating margin at 32.2%. PEG of 1.03 suggests the stock is reasonably priced for its growth.

Bull Case : HIW

The strongest argument for HIW centers on Price/Book, EPS Growth, Profit Margin. Profitability is solid with margins at 20.1% and operating margin at 26.3%.

Bear Case : CDP

The primary concerns for CDP are P/E Ratio, Revenue Growth, Debt/Equity. Debt-to-equity of 1.75 is elevated, increasing financial risk.

Bear Case : HIW

The primary concerns for HIW are Return on Equity, Debt/Equity, PEG Ratio.

Key Dynamics to Monitor

CDP profiles as a value stock while HIW is a mature play — different risk/reward profiles.

HIW carries more volatility with a beta of 1.06 — expect wider price swings.

HIW is growing revenue faster at 7.5% — sustainability is the question.

HIW generates stronger free cash flow (77M), providing more financial flexibility.

Bottom Line

CDP scores higher overall (66/100 vs 65/100), backed by strong 20.8% margins. HIW offers better value entry with a 48.5% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

COPT Defense Properties

REAL ESTATE · REIT - OFFICE · USA

COPT Defense Properties (CDP) is a niche real estate investment trust (REIT) dedicated to the acquisition, development, and management of properties that serve defense and government contractors. With a strategic focus on locations near critical defense installations, CDP is well-positioned to deliver stable, long-term cash flows that align with its tenants' needs amid a dynamic geopolitical landscape. The company’s disciplined capital allocation and robust development pipeline underscore its commitment to maximizing shareholder value while actively supporting national security initiatives.

Highwoods Properties Inc

REAL ESTATE · REIT - OFFICE · USA

Highwoods Properties, Inc., based in Raleigh, is a publicly traded (NYSE: HIW) real estate investment trust (?

Want to dig deeper into these stocks?