Analyzing Retail Opportunity Investments Corp. (ROIC) & Its Peers

Retail Opportunity Investments Corp. (NASDAQ: ROIC) is one of 34 public companies in the “Retail REITs” industry, but how does it compare to its competitors? We will compare Retail Opportunity Investments Corp. to similar companies based on the strength of its earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.

Dividends

Retail Opportunity Investments Corp. pays an annual dividend of $0.75 per share and has a dividend yield of 3.9%. Retail Opportunity Investments Corp. pays out 227.3% 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, “Retail REITs” companies pay a dividend yield of 4.2% and pay out 143.3% of their earnings in the form of a dividend. Retail Opportunity Investments Corp. lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a breakdown of current recommendations for Retail Opportunity Investments Corp. and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Retail Opportunity Investments Corp. 0 4 3 0 2.43
Retail Opportunity Investments Corp. Competitors 130 985 1113 22 2.46

Retail Opportunity Investments Corp. currently has a consensus price target of $22.33, indicating a potential upside of 15.96%. As a group, “Retail REITs” companies have a potential upside of 12.76%. Given Retail Opportunity Investments Corp.’s higher possible upside, equities analysts plainly believe Retail Opportunity Investments Corp. is more favorable than its competitors.

Volatility and Risk

Retail Opportunity Investments Corp. has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Retail Opportunity Investments Corp.’s competitors have a beta of 0.67, suggesting that their average share price is 33% less volatile than the S&P 500.

Institutional & Insider Ownership

94.9% of Retail Opportunity Investments Corp. shares are owned by institutional investors. Comparatively, 85.7% of shares of all “Retail REITs” companies are owned by institutional investors. 2.2% of Retail Opportunity Investments Corp. shares are owned by insiders. Comparatively, 10.5% of shares of all “Retail REITs” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Retail Opportunity Investments Corp. and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Retail Opportunity Investments Corp. 13.92% 2.71% 1.31%
Retail Opportunity Investments Corp. Competitors 21.17% 5.05% 2.88%

Valuation and Earnings

This table compares Retail Opportunity Investments Corp. and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Retail Opportunity Investments Corp. $254.96 million $162.92 million 58.37
Retail Opportunity Investments Corp. Competitors $711.68 million $472.02 million 29.20

Retail Opportunity Investments Corp.’s competitors have higher revenue and earnings than Retail Opportunity Investments Corp.. Retail Opportunity Investments Corp. is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Retail Opportunity Investments Corp. competitors beat Retail Opportunity Investments Corp. on 11 of the 15 factors compared.

About Retail Opportunity Investments Corp.

Retail Opportunity Investments Corp. (ROIC) is a fully integrated, self-managed real estate investment trust (REIT). The Company specializes in the acquisition, ownership and management of necessity-based community and neighborhood shopping centers on the west coast of the United States, anchored by supermarkets and drugstores. Retail Opportunity Investments Partnership, LP is the operating partnership of the Company. The Operating Partnership holds substantially all the assets of the Company and directly or indirectly holds the ownership interests in the Company’s real estate ventures. The Operating Partnership conducts the operations of the Company’s business. As of December 31, 2016, the Company’s portfolio consisted of 82 properties (81 retail and one office) totaling approximately 9.4 million square feet of gross leasable area (GLA). As of December 31, 2016, the Company’s portfolio was approximately 97.6% leased.

Receive News & Ratings for Retail Opportunity Investments Corp. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Retail Opportunity Investments Corp. and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply