Douglas Emmett (NYSE: DEI) is one of 88 public companies in the “Commercial REITs” industry, but how does it weigh in compared to its peers? We will compare Douglas Emmett to similar businesses based on the strength of its analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.

Earnings & Valuation

This table compares Douglas Emmett and its peers gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Douglas Emmett $742.55 million $85.39 million 68.49
Douglas Emmett Competitors $544.77 million $101.33 million 545.88

Douglas Emmett has higher revenue, but lower earnings than its peers. Douglas Emmett 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.

Profitability

This table compares Douglas Emmett and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Douglas Emmett 12.00% 2.95% 1.18%
Douglas Emmett Competitors 51.66% 6.63% 3.81%

Volatility and Risk

Douglas Emmett has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Douglas Emmett’s peers have a beta of 0.79, meaning that their average share price is 21% less volatile than the S&P 500.

Dividends

Douglas Emmett pays an annual dividend of $0.92 per share and has a dividend yield of 2.3%. Douglas Emmett pays out 155.9% 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 3.8% and pay out 162.5% of their earnings in the form of a dividend. Douglas Emmett has raised its dividend for 6 consecutive years.

Analyst Recommendations

This is a summary of current ratings for Douglas Emmett and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Douglas Emmett 2 7 1 0 1.90
Douglas Emmett Competitors 618 2522 2191 24 2.30

Douglas Emmett presently has a consensus price target of $40.00, indicating a potential downside of 1.01%. As a group, “Commercial REITs” companies have a potential upside of 7.17%. Given Douglas Emmett’s peers stronger consensus rating and higher probable upside, analysts plainly believe Douglas Emmett has less favorable growth aspects than its peers.

Institutional & Insider Ownership

96.3% of Douglas Emmett shares are held by institutional investors. Comparatively, 70.2% of shares of all “Commercial REITs” companies are held by institutional investors. 17.8% of Douglas Emmett shares are held by company insiders. Comparatively, 8.7% of shares of all “Commercial REITs” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Douglas Emmett peers beat Douglas Emmett on 11 of the 15 factors compared.

Douglas Emmett Company Profile

Douglas Emmett, Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company is owner and operator of office and multifamily properties located in submarkets in Los Angeles and Honolulu. The Company operates through two segments: the acquisition, development, ownership and management of office real estate (Office Segment), and the acquisition, development, ownership and management of multifamily real estate (Multifamily Segment). The services for its Office segment include primarily rental of office space and other tenant services, including parking and storage space rental. The services for its Multifamily segment include primarily rental of apartments and other tenant services, including parking and storage space rental. It focuses on owning, acquiring developing and managing a substantial share of office properties and multifamily communities in neighborhoods.

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