Head to Head Analysis: Washington Real Estate Investment Trust (WRE) vs. The Competition

Washington Real Estate Investment Trust (NYSE: WRE) is one of 90 publicly-traded companies in the “Commercial REITs” industry, but how does it compare to its competitors? We will compare Washington Real Estate Investment Trust to related companies based on the strength of its risk, profitability, valuation, analyst recommendations, dividends, institutional ownership and earnings.

Dividends

Washington Real Estate Investment Trust pays an annual dividend of $1.20 per share and has a dividend yield of 3.7%. Washington Real Estate Investment Trust pays out 400.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Commercial REITs” companies pay a dividend yield of 3.9% and pay out 162.0% of their earnings in the form of a dividend. Washington Real Estate Investment Trust lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Insider & Institutional Ownership

83.6% of Washington Real Estate Investment Trust shares are held by institutional investors. Comparatively, 70.2% of shares of all “Commercial REITs” companies are held by institutional investors. 0.6% of Washington Real Estate Investment Trust shares are held by company insiders. Comparatively, 8.7% of shares of all “Commercial REITs” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Washington Real Estate Investment Trust and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Washington Real Estate Investment Trust 0 3 3 0 2.50
Washington Real Estate Investment Trust Competitors 646 2552 2210 24 2.30

Washington Real Estate Investment Trust currently has a consensus price target of $33.92, suggesting a potential upside of 4.55%. As a group, “Commercial REITs” companies have a potential upside of 7.62%. Given Washington Real Estate Investment Trust’s competitors higher possible upside, analysts clearly believe Washington Real Estate Investment Trust has less favorable growth aspects than its competitors.

Profitability

This table compares Washington Real Estate Investment Trust and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Washington Real Estate Investment Trust 7.10% 2.10% 0.98%
Washington Real Estate Investment Trust Competitors 53.44% 6.74% 3.87%

Valuation & Earnings

This table compares Washington Real Estate Investment Trust and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Washington Real Estate Investment Trust $313.26 million $119.33 million 108.13
Washington Real Estate Investment Trust Competitors $544.77 million $101.33 million 446.33

Washington Real Estate Investment Trust’s competitors have higher revenue, but lower earnings than Washington Real Estate Investment Trust. Washington Real Estate Investment Trust is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Washington Real Estate Investment Trust has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Washington Real Estate Investment Trust’s competitors have a beta of 0.79, meaning that their average share price is 21% less volatile than the S&P 500.

Summary

Washington Real Estate Investment Trust competitors beat Washington Real Estate Investment Trust on 10 of the 15 factors compared.

Washington Real Estate Investment Trust Company Profile

Washington Real Estate Investment Trust is a self-administered equity real estate investment trust. The Company’s business consists of the ownership and operation of real property in the greater Washington metro region. The Company owns a diversified portfolio of office buildings, multifamily buildings and retail centers. The Company’s segments include office, multifamily and retail. The Company’s office properties provide office space for various types of businesses and professions. The Company’s multifamily properties provide rental housing for individuals and families throughout the Washington metro region. Its retail properties are typically grocery store anchored neighborhood centers that include other small shop tenants or regional power centers with various junior box tenants. As of April 4, 2017, it owned a diversified portfolio of 50 properties, totaling approximately 6.0 million square feet of commercial space and 4,480 residential units, and land held for development.

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