WallStSmart

COPT Defense Properties (CDP)vsFranklin Street Properties Corp (FSP)

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Smart Verdict

WallStSmart Research — data-driven comparison

COPT Defense Properties generates 644% more annual revenue ($788.06M vs $105.92M). CDP leads profitability with a 20.8% profit margin vs -39.5%. 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

FSP

Hold

45

out of 100

Grade: D+

Growth: 4.7Profit: 2.0Value: 5.7Quality: 6.0
Piotroski: 4/9Altman Z: 0.23
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
FSPUndervalued (+84.7%)

Margin of Safety

+84.7%

Fair Value

$5.36

Current Price

$0.35

$5.01 discount

UndervaluedFair: $5.36Overvalued

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

FSP2 strengths · Avg: 10.0/10
Price/BookValuation
0.1x10/10

Reasonable price relative to book value

EPS GrowthGrowth
317.6%10/10

Earnings expanding 317.6% YoY

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

FSP4 concerns · Avg: 2.3/10
Market CapQuality
$41.64M3/10

Smaller company, higher risk/reward

PEG RatioValuation
9.822/10

Expensive relative to growth rate

Return on EquityProfitability
-5.5%2/10

ROE of -5.5% — below average capital efficiency

Revenue GrowthGrowth
-1.3%2/10

Revenue declined 1.3%

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 : FSP

The strongest argument for FSP centers on Price/Book, EPS Growth.

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 : FSP

The primary concerns for FSP are Market Cap, PEG Ratio, Return on Equity.

Key Dynamics to Monitor

CDP profiles as a value stock while FSP is a turnaround play — different risk/reward profiles.

FSP carries more volatility with a beta of 0.84 — expect wider price swings.

CDP is growing revenue faster at 3.9% — sustainability is the question.

CDP generates stronger free cash flow (42M), providing more financial flexibility.

Bottom Line

CDP scores higher overall (66/100 vs 45/100), backed by strong 20.8% margins. FSP offers better value entry with a 84.7% margin of safety. Both earn "Strong Buy" and "Hold" 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.

Franklin Street Properties Corp

REAL ESTATE · REIT - OFFICE · USA

Franklin Street Properties Corp (FSP) is a prominent real estate investment trust (REIT) dedicated to the acquisition, development, and management of high-quality office and industrial properties throughout the United States. Its diversified portfolio, strategically situated in key urban markets, aims to deliver robust income streams while enhancing shareholder returns through asset optimization and sustainable practices. Led by an experienced management team, FSP employs a disciplined investment approach that enables it to seize emerging opportunities in the ever-evolving real estate landscape, solidifying its reputation as a dependable leader in the REIT sector.

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