TIER REIT (NYSE: TIER) is one of 17 public companies in the “Office REITs” industry, but how does it compare to its competitors? We will compare TIER REIT to similar companies based on the strength of its earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.
This table compares TIER REIT and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|TIER REIT Competitors||10.24%||3.57%||1.50%|
57.5% of TIER REIT shares are owned by institutional investors. Comparatively, 84.5% of shares of all “Office REITs” companies are owned by institutional investors. 1.2% of TIER REIT shares are owned by insiders. Comparatively, 2.6% of shares of all “Office 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.
Earnings and Valuation
This table compares TIER REIT and its competitors revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|TIER REIT||$242.82 million||-$29.41 million||10.81|
|TIER REIT Competitors||$741.50 million||$133.14 million||27.84|
TIER REIT’s competitors have higher revenue and earnings than TIER REIT. TIER REIT 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.
This is a breakdown of current recommendations for TIER REIT and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|TIER REIT Competitors||120||529||542||3||2.36|
TIER REIT currently has a consensus price target of $20.50, indicating a potential upside of 4.22%. As a group, “Office REITs” companies have a potential upside of 9.38%. Given TIER REIT’s competitors higher possible upside, analysts plainly believe TIER REIT has less favorable growth aspects than its competitors.
TIER REIT pays an annual dividend of $0.72 per share and has a dividend yield of 3.7%. TIER REIT pays out 39.6% of its earnings in the form of a dividend. As a group, “Office REITs” companies pay a dividend yield of 3.3% and pay out 154.7% of their earnings in the form of a dividend. TIER REIT is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
Volatility and Risk
TIER REIT has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, TIER REIT’s competitors have a beta of 0.89, suggesting that their average share price is 11% less volatile than the S&P 500.
TIER REIT beats its competitors on 8 of the 15 factors compared.
TIER REIT Company Profile
TIER REIT, Inc. is a real estate investment trust. The Company’s business consists of owning, acquiring, developing, operating, investing in, and disposing of real estate assets. The Company’s business is conducted through Tier Operating Partnership LP (Tier OP). As of December 31, 2016, the Company owned interests in 29 operating office properties, one non-operating property and one development property located in 13 markets throughout the United States. It owns properties located in metropolitan cities and suburban markets in the United States. The Company’s office properties include The Terrace Office Park, Domain 3, Domain 4, 5950 Sherry Lane, Burnett Plaza, Loop Central, One BriarLake Plaza, Three Eldridge Place, Eisenhower I, Forum Office Park, 500 E. Pratt, Woodcrest Corporate Center and 111 Woodcrest. The Company’s properties are located in Austin, Dallas, Houston, Charlotte, Nashville, Atlanta and Denver.
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