Whitestone REIT (WSR) & Government Properties Income Trust (GOV) Financial Analysis
Whitestone REIT (NYSE: WSR) and Government Properties Income Trust (NYSE:GOV) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, risk, earnings, valuation and institutional ownership.
This is a breakdown of recent ratings and recommmendations for Whitestone REIT and Government Properties Income Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Government Properties Income Trust||3||0||1||0||1.50|
Whitestone REIT presently has a consensus price target of $14.67, indicating a potential upside of 13.96%. Government Properties Income Trust has a consensus price target of $18.13, indicating a potential downside of 1.17%. Given Whitestone REIT’s stronger consensus rating and higher probable upside, research analysts plainly believe Whitestone REIT is more favorable than Government Properties Income Trust.
Risk & Volatility
Whitestone REIT has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, Government Properties Income Trust has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.
Earnings and Valuation
This table compares Whitestone REIT and Government Properties Income Trust’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Whitestone REIT||$112.35 million||4.41||$49.43 million||$0.13||99.01|
|Government Properties Income Trust||N/A||N/A||N/A||($2.26)||-8.12|
Whitestone REIT has higher revenue and earnings than Government Properties Income Trust. Government Properties Income Trust is trading at a lower price-to-earnings ratio than Whitestone REIT, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
43.8% of Whitestone REIT shares are owned by institutional investors. 5.3% of Whitestone REIT shares are owned by 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.
Whitestone REIT pays an annual dividend of $1.14 per share and has a dividend yield of 8.9%. Government Properties Income Trust pays an annual dividend of $1.72 per share and has a dividend yield of 9.4%. Whitestone REIT pays out 877.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Government Properties Income Trust pays out -76.1% of its earnings in the form of a dividend. Government Properties Income Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Whitestone REIT and Government Properties Income Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Government Properties Income Trust||4.64%||5.16%||0.55%|
Whitestone REIT beats Government Properties Income Trust on 7 of the 13 factors compared between the two stocks.
About Whitestone REIT
Whitestone REIT is a real estate investment trust. The Company is engaged in owning and operating commercial properties in culturally diverse markets in various metropolitan areas. The Company’s acquisition targets are located in densely populated, culturally diverse neighborhoods, primarily in and around Austin, Chicago, Dallas-Fort Worth, Houston, Phoenix and San Antonio. As of December 31, 2016, the Company owned or held interests in 69 commercial properties, including 15 properties in Houston, five properties in Dallas-Fort Worth, three properties in San Antonio, four properties in Austin, 27 properties in the Scottsdale and Phoenix, Arizona metropolitan areas, and one property in Buffalo Grove, Illinois, a suburb of Chicago. As of December 31, 2016, the Company’s properties included Heritage Trace Plaza, Headquarters Village, La Mirada, The Marketplace at Central, Mercado at Scottsdale Ranch, Paradise Plaza, Parkside Village North, Pima Norte and Quinlan Crossing.
About Government Properties Income Trust
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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