Equity Commonwealth (NYSE: EQC) is one of 20 publicly-traded companies in the “Office REITs” industry, but how does it weigh in compared to its competitors? We will compare Equity Commonwealth to similar businesses based off the strength of its profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Risk and Volatility

Equity Commonwealth has a beta of 0.13, indicating that its share price is 87% less volatile than the S&P 500. Comparatively, Equity Commonwealth’s competitors have a beta of 0.91, indicating that their average share price is 9% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Equity Commonwealth and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Equity Commonwealth 0 2 0 0 2.00
Equity Commonwealth Competitors 172 632 610 10 2.32

Equity Commonwealth presently has a consensus price target of $32.50, indicating a potential upside of 5.01%. All “Office REITs” companies have a potential upside of 10.47%. Given Equity Commonwealth’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Equity Commonwealth has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

94.5% of Equity Commonwealth shares are owned by institutional investors. Comparatively, 85.9% of shares of all “Office REITs” companies are owned by institutional investors. 1.0% of Equity Commonwealth shares are owned by insiders. Comparatively, 2.8% 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 stock is poised for long-term growth.

Earnings & Valuation

This table compares Equity Commonwealth and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Equity Commonwealth $409.33 million $194.30 million 35.99
Equity Commonwealth Competitors $648.15 million $343.67 million 58.88

Equity Commonwealth’s competitors have higher revenue and earnings than Equity Commonwealth. Equity Commonwealth is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently the more affordable than other companies in its industry.

Profitability

This table compares Equity Commonwealth and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Equity Commonwealth 28.50% 3.69% 2.52%
Equity Commonwealth Competitors 5.41% 1.37% 0.69%

Summary

Equity Commonwealth competitors beat Equity Commonwealth on 9 of the 13 factors compared.

About Equity Commonwealth

Equity Commonwealth is an internally managed and self-advised real estate investment trust. The Company is engaged in the ownership and operation primarily of office buildings across the United States. The Company conducts its activities primarily through EQC Operating Trust (the Operating Trust). As of August 14, 2017, the Company’s portfolio included 20 properties and 11 million square feet. As of December 31, 2016, its properties included Parkshore Plaza; 1225 Seventeenth Street; 1601 Dry Creek Drive; 97 Newberry Road; 33 Stiles Lane; 802 Delaware Avenue; 6600 North Military Trail; East Eisenhower Parkway; 2250 Pilot Knob Road; 411 Farwell Avenue; Cherrington Corporate Center; 1500 Market Street; Foster Plaza; 4515 Seton Center Parkway; Bridgepoint Square, and Research Park. As of December 31, 2016, the Company’s land parcels included 625 Crane Street and Cabot Business Park Land.

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