Critical Comparison: Pacific Office Properties Trust (OTCMKTS:PCFO) & Dynex Capital (NYSE:DX)

Dynex Capital (NYSE:DX) and Pacific Office Properties Trust (OTCMKTS:PCFO) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Insider and Institutional Ownership

38.3% of Dynex Capital shares are owned by institutional investors. 1.0% of Dynex Capital shares are owned by company insiders. Comparatively, 24.1% of Pacific Office Properties Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Dynex Capital and Pacific Office Properties Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dynex Capital	0	1	3	0	2.75
Pacific Office Properties Trust	0	0	0	0	N/A

Dynex Capital currently has a consensus target price of $13.63, indicating a potential upside of 18.89%. Given Dynex Capital’s higher probable upside, equities research analysts plainly believe Dynex Capital is more favorable than Pacific Office Properties Trust.

Earnings and Valuation

This table compares Dynex Capital and Pacific Office Properties Trust’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dynex Capital	$207.52 million	3.27	-$6.13 million	($0.28)	-40.93
Pacific Office Properties Trust	N/A	N/A	N/A	N/A	N/A

Pacific Office Properties Trust has lower revenue, but higher earnings than Dynex Capital.

Profitability

This table compares Dynex Capital and Pacific Office Properties Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dynex Capital	-2.95%	-6.04%	-0.82%
Pacific Office Properties Trust	N/A	N/A	N/A

About Dynex Capital

Dynex Capital, Inc., a mortgage real estate investment trust, invests in mortgage-backed securities (MBS) on a leveraged basis in the United States. It invests in agency and non-agency MBS consisting of residential MBS, commercial MBS (CMBS), and CMBS interest-only securities. Agency MBS have a guaranty of principal payment by an agency of the U.S. government or a U.S. government-sponsored entity, such as Fannie Mae and Freddie Mac. Non-Agency MBS have no such guaranty of payment. The company has qualified as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal income taxes if it distributes at least 90% of its taxable income to its stockholders as dividends. Dynex Capital, Inc. was incorporated in 1987 and is headquartered in Glen Allen, Virginia.

About Pacific Office Properties Trust

Pacific Office Properties Trust, Inc. is a real estate investment trust, which owns and operates office properties. Its portfolio includes Davies Pacific Center, Pacific Business News Building, Pan Am Building, Waterfront Plaza, and City Square. The company was founded on March 19, 2008 and is headquartered in Honolulu, HI.