Head-To-Head Analysis: Government Properties Income Trust (GOV) vs. Its Rivals

Government Properties Income Trust (NASDAQ: GOV) is one of 77 publicly-traded companies in the “Commercial REITs” industry, but how does it contrast to its peers? We will compare Government Properties Income Trust to related companies based on the strength of its profitability, analyst recommendations, institutional ownership, dividends, valuation, earnings and risk.

Dividends

Government Properties Income Trust pays an annual dividend of $1.72 per share and has a dividend yield of 9.4%. Government Properties Income Trust pays out 312.7% 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 4.0% and pay out 93.4% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Government Properties Income Trust and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Government Properties Income Trust $258.18 million $57.84 million 33.25
Government Properties Income Trust Competitors $537.26 million $100.34 million 394.06

Government Properties Income Trust’s peers have higher revenue and earnings than Government Properties Income Trust. Government 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 recent recommendations and price targets for Government Properties Income Trust and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Government Properties Income Trust 2 1 2 0 2.00
Government Properties Income Trust Competitors 637 2602 2240 24 2.30

Government Properties Income Trust currently has a consensus price target of $18.75, indicating a potential upside of 2.52%. As a group, “Commercial REITs” companies have a potential upside of 6.72%. Given Government Properties Income Trust’s peers stronger consensus rating and higher probable upside, analysts clearly believe Government Properties Income Trust has less favorable growth aspects than its peers.

Insider and Institutional Ownership

58.3% of Government Properties Income Trust shares are owned by institutional investors. Comparatively, 73.2% of shares of all “Commercial REITs” companies are owned by institutional investors. 2.7% of Government Properties Income Trust shares are owned by company insiders. Comparatively, 7.3% of shares of all “Commercial REITs” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Government Properties Income Trust has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Government Properties Income Trust’s peers have a beta of 0.77, indicating that their average share price is 23% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Government Properties Income Trust 15.30% 4.27% 1.66%
Government Properties Income Trust Competitors 53.33% 6.54% 3.83%

Summary

Government Properties Income Trust peers beat Government Properties Income Trust on 13 of the 15 factors compared.

Government Properties Income Trust Company Profile

Government Properties Income Trust is a real estate investment trust (REIT). The Company operates through two segments: ownership of properties that are primarily leased to government tenants and its equity method investment in Select Income REIT (SIR). The Company’s properties are located in areas, including Alabama, Arizona, California, Colorado, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, New Hampshire, New Jersey and New Mexico. As of December 31, 2016, the Company owned 73 properties (95 buildings). As of December 31, 2016, the Company’s properties were located in 31 states and the District of Columbia, and contained approximately 11.4 million rentable square feet.

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