CDP vs HIW: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
CDP and HIW are similarly sized, but CDP trades noticeably cheaper on forward earnings (26.00x vs 47.33x): the market is paying up for HIW's profile and pricing CDP more conservatively, or for faster growth. Which you prefer comes down to the drivers you believe, and whether adding either over-concentrates what you already own.
CDP vs HIW: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | CDP | HIW | What it tells you |
|---|---|---|---|
| Forward P/E | 26.00 | 47.33 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 26.36 | 21.94 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 0.79 | 1.08 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 92% of range | 85% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 2.80 | 1.55 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: CDP is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how CDP and HIW affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. CDP and HIW share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined CDP and HIW exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does COPT Defense Properties (CDP) do?
COPT Defense Properties (NYSE: CDP), formerly Corporate Office Properties Trust, is a self-managed REIT that owns, develops, and operates properties located near or inside key US Government defense installations and intelligence hubs. Its Defense/IT portfolio spans roughly 23 million square feet across markets like Fort Meade and the National Business Park in Maryland, Northern Virginia, and Redstone Arsenal in Huntsville, Alabama, and its tenants are primarily the US Government and defense contractors engaged in priority national-security work. The high security and specialized build requirements create meaningful barriers to entry and long, sticky leases.
What does Highwoods Properties (HIW) do?
Highwoods Properties (NYSE: HIW) is a fully integrated office REIT headquartered in Raleigh that owns, develops, leases and manages office properties concentrated in the best business districts (BBDs) of fast-growing Sun Belt markets including Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond and Tampa. The company focuses on newer, amenity-rich buildings meant to win the flight-to-quality trend as tenants consolidate into better space, and it recycles capital by selling older assets and funding development in supply-constrained submarkets. It also runs a modest development pipeline, recently placing over $200 million of projects into service and investing in properties in Dallas and Raleigh.
CDP vs HIW: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- CDP drivers: Defense-budget-linked demand; Pre-leased development pipeline.
- HIW drivers: Sun Belt flight-to-quality; Rent growth and leasing momentum.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: CDP carries concentration risk: its results depend heavily on US defense spending priorities and on the government and a relatively narrow set of contractors as tenants, so budget cuts, base realignments, or shifts in mission funding could pressure occupancy. For HIW, office remains the most challenged commercial real estate sector, with hybrid work and corporate downsizing pressuring long-term demand and occupancy.
CDP or HIW: which should you pick?
CDP vs HIW: the full fundamentals
CDP. CDP trades at a mid-teens multiple of forecast 2026 FFO per share (roughly $2.76 at the guidance midpoint), a valuation reflecting its defensive, defense-anchored positioning versus commodity office REITs. Q1 2026 FFO per share of about $0.69 rose in the mid-single digits year over year, and the company nudged full-year guidance higher. Shares traded near 52-week highs around the high $30s in mid-2026.
HIW. HIW trades at a low multiple of FFO, reflecting the market's caution on office REITs, and its appeal is largely the high, FFO-covered dividend. Q1 2026 FFO of about $0.84 was roughly flat to slightly up year over year while revenue beat on rent growth. Net assets are reported near $2.4 billion, so the shares carry the leverage typical of the sector.
Headline figures (approximate, July 2026): CDP shows revenue (ttm) ~$780M, q1 2026 real estate revenue ~$195M, diluted ffo per share (q1 2026) ~$0.69, 2026 ffo guidance (midpoint) ~$2.76; HIW shows revenue (ttm) ~$840M, q1 2026 rental revenue ~$214M (+6.8% YoY), q1 2026 ffo / share ~$0.84, market cap ~$3B.
The bottom line: CDP vs HIW
CDP and HIW are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined CDP and HIW exposure against your real portfolio. It is not an investment adviser.
Wondering how CDP or HIW fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in COPT Defense Properties with AI
Connect the broker you already use and ask Walnut's AI how CDP fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between CDP and HIW?
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COPT Defense Properties (NYSE: CDP), formerly Corporate Office Properties Trust, is a self-managed REIT that owns, develops, and operates properties located near or inside key US Government defense installations and intelligence hubs. Highwoods Properties (NYSE: HIW) is a fully integrated office REIT headquartered in Raleigh that owns, develops, leases and manages office properties concentrated in the best business districts (BBDs) of fast-growing Sun Belt markets including Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond and Tampa. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is CDP or HIW the better stock?
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Neither is universally better; they suit different views and risk levels. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, CDP or HIW?
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On forward P/E (as of August 2026), CDP trades at 26.00x and HIW at 47.33x, so CDP is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both CDP and HIW?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of CDP vs HIW?
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CDP: CDP carries concentration risk: its results depend heavily on US defense spending priorities and on the government and a relatively narrow set of contractors as tenants, so budget cuts, base realignments, or shifts in mission funding could pressure occupancy. As a REIT with development activity, it is sensitive to interest rates, which affect both borrowing costs and the valuation multiple investors assign to its cash flows. Broader office-sector sentiment can weigh on the stock even though its niche differs from commodity office. Development projects carry execution and lease-up risk if a pre-leased tenant's needs change, and geographic concentration in a few defense markets amplifies local disruptions. HIW: Office remains the most challenged commercial real estate sector, with hybrid work and corporate downsizing pressuring long-term demand and occupancy. HIW carries meaningful leverage (long-term debt in the billions, debt-to-EBITDA in the low-to-mid 6s), so higher-for-longer interest rates raise refinancing costs and weigh on the stock. Occupancy sits in the upper-80s rather than the mid-90s, leaving vacancy risk, and elevated tenant improvement and leasing-commission costs can pressure free cash flow. A weaker economy or a Sun Belt supply glut could stall the recovery, and any dividend concern would hit the shares hard.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell CDP or HIW; figures are approximate and dated (as of August 2026). Verify current data before investing.