Financial Review: Office Properties Income Trust (OPI) and Its Peers

Office Properties Income Trust (NASDAQ: OPI) is one of 52 public companies in the “Real estate” industry, but how does it weigh in compared to its peers? We will compare Office Properties Income Trust to related companies based on the strength of its institutional ownership, risk, earnings, valuation, profitability, dividends and analyst recommendations.

Profitability

This table compares Office Properties Income Trust and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Office Properties Income Trust 4.14% 0.64% 0.23%
Office Properties Income Trust Competitors 27.70% 3.88% 1.09%

Risk and Volatility

Office Properties Income Trust has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500. Comparatively, Office Properties Income Trust’s peers have a beta of 1.20, meaning that their average stock price is 20% more volatile than the S&P 500.

Insider and Institutional Ownership

41.2% of shares of all “Real estate” companies are owned by institutional investors. 1.3% of Office Properties Income Trust shares are owned by company insiders. Comparatively, 19.6% of shares of all “Real estate” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Office Properties Income Trust and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Office Properties Income Trust $316.53 million $12.09 million 3.85
Office Properties Income Trust Competitors $1.36 billion $336.92 million 29.00

Office Properties Income Trust’s peers have higher revenue and earnings than Office Properties Income Trust. Office Properties Income Trust is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of current recommendations and price targets for Office Properties Income Trust and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Office Properties Income Trust 0 0 0 0 N/A
Office Properties Income Trust Competitors 232 551 721 28 2.36

As a group, “Real estate” companies have a potential upside of 7.98%. Given Office Properties Income Trust’s peers higher probable upside, analysts plainly believe Office Properties Income Trust has less favorable growth aspects than its peers.

Dividends

Office Properties Income Trust pays an annual dividend of $2.20 per share and has a dividend yield of 7.1%. Office Properties Income Trust pays out 27.2% of its earnings in the form of a dividend. As a group, “Real estate” companies pay a dividend yield of 2.9% and pay out 53.0% of their earnings in the form of a dividend. Office Properties Income Trust is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Summary

Office Properties Income Trust peers beat Office Properties Income Trust on 9 of the 12 factors compared.

About Office Properties Income Trust

Office Properties Income Trust operates as a real estate investment trust, which engages in the business of owning and maintaining properties. It operates through thefollowing business segments: Investment in Real Estate, Investment in SIR, and Corporate. The company was founded on February 17, 2009 and is headquartered in Newton, MA.

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