Government Properties Income Trust (NASDAQ: GOV) is one of 74 publicly-traded companies in the “Commercial REITs” industry, but how does it compare to its peers? We will compare Government Properties Income Trust to similar businesses based on the strength of its valuation, profitability, analyst recommendations, dividends, earnings, risk and institutional ownership.

Analyst Ratings

This is a summary of current ratings for Government Properties Income Trust and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Government Properties Income Trust 2 1 2 0 2.00
Government Properties Income Trust Competitors 479 2345 2162 23 2.35

Government Properties Income Trust presently has a consensus price target of $18.75, suggesting a potential upside of 4.17%. As a group, “Commercial REITs” companies have a potential upside of 2.79%. Given Government Properties Income Trust’s higher possible upside, analysts clearly believe Government Properties Income Trust is more favorable than its peers.

Earnings and Valuation

This table compares Government Properties Income Trust and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Government Properties Income Trust $258.18 million $57.84 million 32.73
Government Properties Income Trust Competitors $537.63 million $101.41 million 397.74

Government Properties Income Trust’s peers have higher revenue and earnings than Government Properties Income Trust. Government Properties Income Trust 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 Government Properties Income Trust and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Government Properties Income Trust 15.30% 4.27% 1.66%
Government Properties Income Trust Competitors 50.57% 4.68% 3.49%

Insider & Institutional Ownership

58.2% of Government Properties Income Trust shares are held by institutional investors. Comparatively, 73.0% of shares of all “Commercial REITs” companies are held by institutional investors. 2.7% of Government Properties Income Trust shares are held by insiders. Comparatively, 7.3% of shares of all “Commercial REITs” companies are held by 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.

Dividends

Government Properties Income Trust pays an annual dividend of $1.72 per share and has a dividend yield of 9.6%. Government Properties Income Trust pays out 312.7% 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 4.1% and pay out 93.2% of their earnings in the form of a dividend.

Risk & Volatility

Government Properties Income Trust has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, Government Properties Income Trust’s peers have a beta of 0.78, suggesting that their average share price is 22% less volatile than the S&P 500.

Summary

Government Properties Income Trust peers beat Government Properties Income Trust on 12 of the 15 factors compared.

About Government Properties Income Trust

Government Properties Income Trust is a real estate investment trust (REIT). The Company operates through two segments: ownership of properties that are primarily leased to government tenants and its equity method investment in Select Income REIT (SIR). The Company’s properties are located in areas, including Alabama, Arizona, California, Colorado, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, New Hampshire, New Jersey and New Mexico. As of December 31, 2016, the Company owned 73 properties (95 buildings). As of December 31, 2016, the Company’s properties were located in 31 states and the District of Columbia, and contained approximately 11.4 million rentable square feet.

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