Head-To-Head Review: Equity Commonwealth (EQC) versus Its Competitors
Equity Commonwealth (NYSE: EQC) is one of 20 public companies in the “Office REITs” industry, but how does it weigh in compared to its peers? We will compare Equity Commonwealth to similar businesses based on the strength of its institutional ownership, earnings, analyst recommendations, valuation, risk, profitability and dividends.
Insider and Institutional Ownership
94.0% of Equity Commonwealth shares are held by institutional investors. Comparatively, 85.6% of shares of all “Office REITs” companies are held by institutional investors. 1.0% of Equity Commonwealth shares are held by company insiders. Comparatively, 3.2% of shares of all “Office REITs” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Equity Commonwealth and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Equity Commonwealth Competitors||5.41%||1.37%||0.69%|
Volatility & Risk
Equity Commonwealth has a beta of 0.13, suggesting that its share price is 87% less volatile than the S&P 500. Comparatively, Equity Commonwealth’s peers have a beta of 0.91, suggesting that their average share price is 9% less volatile than the S&P 500.
This is a summary of recent recommendations for Equity Commonwealth and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Equity Commonwealth Competitors||173||641||619||10||2.32|
Equity Commonwealth presently has a consensus target price of $32.50, suggesting a potential upside of 6.91%. As a group, “Office REITs” companies have a potential upside of 8.23%. Given Equity Commonwealth’s peers stronger consensus rating and higher probable upside, analysts clearly believe Equity Commonwealth has less favorable growth aspects than its peers.
Valuation and Earnings
This table compares Equity Commonwealth and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Equity Commonwealth||$409.33 million||$194.30 million||35.35|
|Equity Commonwealth Competitors||$672.08 million||$356.91 million||59.23|
Equity Commonwealth’s peers have higher revenue and earnings than Equity Commonwealth. Equity Commonwealth 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.
Equity Commonwealth peers 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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