Critical Contrast: The RMR Group (RMR) vs. Comstock Holding Companies (CHCI)
The RMR Group (NASDAQ: RMR) and Comstock Holding Companies (NASDAQ:CHCI) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.
Earnings and Valuation
This table compares The RMR Group and Comstock Holding Companies’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|The RMR Group||$266.94 million||3.13||$37.24 million||$2.78||19.89|
|Comstock Holding Companies||$41.58 million||0.16||-$8.99 million||($1.47)||-1.30|
The RMR Group has higher revenue and earnings than Comstock Holding Companies. Comstock Holding Companies is trading at a lower price-to-earnings ratio than The RMR Group, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
The RMR Group has a beta of -0.86, meaning that its stock price is 186% less volatile than the S&P 500. Comparatively, Comstock Holding Companies has a beta of -0.34, meaning that its stock price is 134% less volatile than the S&P 500.
This is a summary of current ratings for The RMR Group and Comstock Holding Companies, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The RMR Group||0||3||2||0||2.40|
|Comstock Holding Companies||0||0||0||0||N/A|
The RMR Group presently has a consensus price target of $59.50, indicating a potential upside of 7.59%. Given The RMR Group’s higher probable upside, equities research analysts plainly believe The RMR Group is more favorable than Comstock Holding Companies.
This table compares The RMR Group and Comstock Holding Companies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The RMR Group||16.44%||10.14%||7.43%|
|Comstock Holding Companies||-13.37%||-92.61%||-7.17%|
The RMR Group pays an annual dividend of $1.00 per share and has a dividend yield of 1.8%. Comstock Holding Companies does not pay a dividend. The RMR Group pays out 36.0% of its earnings in the form of a dividend.
Institutional and Insider Ownership
33.0% of The RMR Group shares are owned by institutional investors. Comparatively, 9.9% of Comstock Holding Companies shares are owned by institutional investors. 55.3% of The RMR Group shares are owned by insiders. Comparatively, 46.4% of Comstock Holding Companies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
The RMR Group beats Comstock Holding Companies on 12 of the 14 factors compared between the two stocks.
About The RMR Group
The RMR Group Inc. is a holding company. The Company’s business is primarily conducted by its subsidiary, The RMR Group LLC (RMR LLC). The Company’s segments include RMR LLC and All Other Operations. RMR LLC manages a portfolio of publicly owned real estate and real estate related businesses. RMR LLC manages Government Properties Income Trust, a real estate investment trust (REIT) that primarily owns properties that are leased to government tenants; Hospitality Properties Trust, an REIT that primarily owns hotels and travel centers; Select Income REIT, an REIT that primarily owns properties leased to single tenants across the United States and leased lands in Hawaii, and Senior Housing Properties Trust, an REIT that primarily owns senior living communities and medical office buildings. As of June 30, 2016, RMR LLC managed over 1,300 properties, which were located in 48 states, Washington, District of Columbia, Puerto Rico and Canada.
About Comstock Holding Companies
Comstock Holding Companies, Inc. (Comstock ), formerly Comstock Homebuilding Companies, Inc. is a diversified real estate development and services company focused on the Washington, D.C. metropolitan area. The Company builds a range of products including apartments, single-family homes, townhouses, mid-rise condominiums, high-rise multi-family condominiums and mixed-use (residential and commercial) developments. As of December 31, 2011, the Company had built and delivered more than 5,300 homes. The Company has built homes and apartment buildings in suburban communities, where it focuses on low density products. The Company’s apartment buildings are developed as rental properties to be held and operated for its own purposes, converted at some point to for-sale condominium units or sold on a merchant build basis. In March 7, 2012, Cascades II completed the sale of its Potomac Square Apartment project to an affiliate of CAPREIT Acquisition Corporation.
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