Reviewing Douglas Emmett (DEI) and Its Rivals

Douglas Emmett (NYSE:DEI) is one of 59 publicly-traded companies in the “Office REITs” industry, but how does it weigh in compared to its rivals? We will compare Douglas Emmett to related companies based on the strength of its analyst recommendations, earnings, risk, institutional ownership, profitability, dividends and valuation.

Volatility & Risk

Douglas Emmett has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, Douglas Emmett’s rivals have a beta of 1.02, meaning that their average share price is 2% more volatile than the S&P 500.

Insider and Institutional Ownership

97.4% of Douglas Emmett shares are owned by institutional investors. Comparatively, 61.2% of shares of all “Office REITs” companies are owned by institutional investors. 13.0% of Douglas Emmett shares are owned by insiders. Comparatively, 8.7% of shares of all “Office REITs” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Douglas Emmett and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Douglas Emmett	1	6	1	0	2.00
Douglas Emmett Competitors	946	2834	2691	25	2.28

Douglas Emmett currently has a consensus target price of $13.14, suggesting a potential upside of 31.81%. As a group, “Office REITs” companies have a potential upside of 1.46%. Given Douglas Emmett’s higher probable upside, equities research analysts clearly believe Douglas Emmett is more favorable than its rivals.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Douglas Emmett	$1.00 billion	$16.27 million	-76.70
Douglas Emmett Competitors	$531.67 million	-$49.56 million	15.12

Douglas Emmett has higher revenue and earnings than its rivals. Douglas Emmett is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

Douglas Emmett pays an annual dividend of $0.76 per share and has a dividend yield of 7.6%. Douglas Emmett pays out -584.6% of its earnings in the form of a dividend. As a group, “Office REITs” companies pay a dividend yield of 4.9% and pay out -314.7% of their earnings in the form of a dividend. Douglas Emmett is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Douglas Emmett	-2.04%	-0.60%	-0.22%
Douglas Emmett Competitors	-16.89%	-7.45%	-0.14%

Summary

Douglas Emmett beats its rivals on 10 of the 15 factors compared.

Douglas Emmett Company Profile

Douglas Emmett, Inc. is a real estate investment trust (REIT) that owns, operates and acquires office and multifamily properties. Its portfolio is concentrated in established neighborhoods in Los Angeles and Honolulu, with properties serving businesses and residents in those markets. The company focuses on office buildings and apartment communities in areas including West Los Angeles and Honolulu. Its business includes managing and leasing its properties, as well as pursuing acquisitions and other opportunities to grow and maintain its portfolio.