Whitestone REIT (NYSE: WSR) is one of 85 publicly-traded companies in the “Commercial REITs” industry, but how does it compare to its peers? We will compare Whitestone REIT to similar companies based off the strength of its dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Profitability

This table compares Whitestone REIT and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Whitestone REIT 4.36% 1.69% 0.54%
Whitestone REIT Competitors 46.88% 6.04% 3.34%

Analyst Ratings

This is a summary of recent recommendations for Whitestone REIT and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Whitestone REIT 1 1 2 0 2.25
Whitestone REIT Competitors 744 2712 2242 31 2.27

Whitestone REIT currently has a consensus target price of $14.67, suggesting a potential upside of 8.64%. All “Commercial REITs” companies have a potential upside of 3.50%. Given Whitestone REIT’s higher probable upside, research analysts clearly believe Whitestone REIT is more favorable than its peers.

Earnings and Valuation

This table compares Whitestone REIT and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Whitestone REIT $112.35 million $49.43 million 103.85
Whitestone REIT Competitors $460.14 million $291.61 million 32.13

Whitestone REIT’s peers have higher revenue and earnings than Whitestone REIT. Whitestone REIT is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently the more expensive than other companies in its industry.

Dividends

Whitestone REIT pays an annual dividend of $1.14 per share and has a dividend yield of 8.4%. 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. As a group, “Commercial REITs” companies pay a dividend yield of 3.9% and pay out 204.8% of their earnings in the form of a dividend.

Risk and Volatility

Whitestone REIT has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, Whitestone REIT’s peers have a beta of 0.81, meaning that their average stock price is 19% less volatile than the S&P 500.

Institutional & Insider Ownership

43.8% of Whitestone REIT shares are owned by institutional investors. Comparatively, 69.3% of shares of all “Commercial REITs” companies are owned by institutional investors. 5.3% of Whitestone REIT shares are owned by insiders. Comparatively, 8.5% of shares of all “Commercial REITs” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Whitestone REIT peers beat Whitestone REIT on 10 of the 15 factors compared.

Whitestone REIT Company Profile

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.

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