Financial Analysis: The GPT Group (GPTGF) and Its Competitors

Earnings and Valuation

This table compares The GPT Group and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
The GPT Group	N/A	N/A	10.67
The GPT Group Competitors	$197.66 million	$18.17 million	8.30

The GPT Group’s competitors have higher revenue and earnings than The GPT Group. The GPT Group is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares The GPT Group and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The GPT Group	N/A	N/A	N/A
The GPT Group Competitors	-38.25%	-7.28%	-0.05%

Dividends

The GPT Group pays an annual dividend of $0.26 per share and has a dividend yield of 7.6%. The GPT Group pays out 80.7% 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, “Diversified REITs” companies pay a dividend yield of 6.5% and pay out 208.3% of their earnings in the form of a dividend. The GPT Group is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

31.8% of The GPT Group shares are owned by institutional investors. Comparatively, 39.2% of shares of all “Diversified REITs” companies are owned by institutional investors. 11.9% of shares of all “Diversified REITs” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

The GPT Group beats its competitors on 6 of the 9 factors compared.

About The GPT Group

GPT is a vertically integrated diversified property group that owns and actively manages a portfolio of high quality Australian retail, office and logistics assets, with assets under management of $32.4 billion. The Group utilises its real estate management platform to enhance returns through property development and funds management.