Office Properties Income Trust (NASDAQ:OPI) and Pico (NASDAQ:PICO) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.

Analyst Ratings

This is a summary of current recommendations and price targets for Office Properties Income Trust and Pico, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Office Properties Income Trust 1 2 0 0 1.67
Pico 0 0 0 0 N/A

Office Properties Income Trust presently has a consensus target price of $26.33, suggesting a potential downside of 21.86%. Given Office Properties Income Trust’s higher probable upside, equities research analysts clearly believe Office Properties Income Trust is more favorable than Pico.

Valuation and Earnings

This table compares Office Properties Income Trust and Pico’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Office Properties Income Trust $426.56 million 3.81 -$21.88 million $7.95 4.24
Pico $13.05 million 15.66 -$3.33 million N/A N/A

Pico has lower revenue, but higher earnings than Office Properties Income Trust.

Insider and Institutional Ownership

71.2% of Office Properties Income Trust shares are owned by institutional investors. Comparatively, 69.6% of Pico shares are owned by institutional investors. 1.7% of Office Properties Income Trust shares are owned by insiders. Comparatively, 10.4% of Pico shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Office Properties Income Trust has a beta of 1.65, suggesting that its share price is 65% more volatile than the S&P 500. Comparatively, Pico has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.

Profitability

This table compares Office Properties Income Trust and Pico’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Office Properties Income Trust -14.86% -4.29% -1.54%
Pico 31.37% 3.88% 3.82%

Summary

Pico beats Office Properties Income Trust on 6 of the 10 factors compared between the two stocks.

Office Properties Income Trust Company Profile

Office Properties Income Trust is a real estate investment trust, or REIT, which owns buildings primarily leased to single tenants and those with high credit quality characteristics like government entities. In December 2018, our predecessor company Government Properties Income Trust, or GOV, merged with Select Income REIT, or SIR, and the combined company was renamed Office Properties Income Trust, or OPI. Combining the two companies creates a national office REIT with increased scale, enhanced tenant and geographic diversification, a well-laddered lease expiration schedule, a broader investment strategy, and a company with one of the highest percentages of rent paid by investment grade rated tenants in the office sector.

Pico Company Profile

PICO Holdings, Inc., together with its subsidiaries, engages in the water resource and water storage activities in the southwestern United States. It engages in selling its water rights and storage credits in Arizona, Colorado, Nevada, and New Mexico. The Company sells its water rights to real estate developers, power generating facilities, or other commercial and industrial users, as well as to water utilities, municipalities, and other government agencies; and sells its stored water to state agencies, commercial developers, or municipalities for their commercial projects or communities. It also leases and sells water assets and land. PICO Holdings, Inc. was founded in 1981 and is based in Carson City, Nevada.

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