PS Business Parks (NYSE: PSB) is one of 85 public companies in the “Commercial REITs” industry, but how does it contrast to its competitors? We will compare PS Business Parks to related businesses based on the strength of its earnings, valuation, analyst recommendations, institutional ownership, profitability, dividends and risk.

Valuation and Earnings

This table compares PS Business Parks and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
PS Business Parks $394.93 million $261.16 million 44.13
PS Business Parks Competitors $460.20 million $291.73 million 31.98

PS Business Parks’ competitors have higher revenue and earnings than PS Business Parks. PS Business Parks 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.

Dividends

PS Business Parks pays an annual dividend of $3.40 per share and has a dividend yield of 2.5%. PS Business Parks pays out 111.1% 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 4.0% and pay out 204.6% of their earnings in the form of a dividend. PS Business Parks has raised its dividend for 3 consecutive years.

Profitability

This table compares PS Business Parks and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PS Business Parks 39.05% 16.50% 7.61%
PS Business Parks Competitors 45.76% 5.92% 3.27%

Volatility & Risk

PS Business Parks has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, PS Business Parks’ competitors have a beta of 0.81, suggesting that their average stock price is 19% less volatile than the S&P 500.

Institutional and Insider Ownership

72.4% of PS Business Parks shares are owned by institutional investors. Comparatively, 69.3% of shares of all “Commercial REITs” companies are owned by institutional investors. 1.6% of PS Business Parks shares are owned by insiders. Comparatively, 8.5% of shares of all “Commercial REITs” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for PS Business Parks and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PS Business Parks 1 1 0 0 1.50
PS Business Parks Competitors 747 2721 2245 31 2.27

PS Business Parks presently has a consensus target price of $107.00, suggesting a potential downside of 20.77%. As a group, “Commercial REITs” companies have a potential upside of 6.61%. Given PS Business Parks’ competitors stronger consensus rating and higher probable upside, analysts clearly believe PS Business Parks has less favorable growth aspects than its competitors.

Summary

PS Business Parks competitors beat PS Business Parks on 11 of the 15 factors compared.

PS Business Parks Company Profile

PS Business Parks, Inc. is a self-advised and self-managed real estate investment trust (REIT). The Company owns, operates and develops commercial properties, primarily multi-tenant flex, office and industrial parks. It focuses on owning concentrated business parks. PS Business Parks, L.P. (the Operating Partnership) is a California limited partnership, which owns directly or indirectly substantially all of its assets and through, which the Company conducts substantially all of its business. PSB is the partner of the Operating Partnership and, as of December 31, 2016, owned 77.9% of the common partnership units. The remaining common partnership units are owned by Public Storage (PS). As of December 31, 2016, the Company owned and operated 28.1 million rentable square feet of commercial space, comprising 99 business parks, in the states, including California, Texas, Virginia, Florida, Maryland and Washington. It also manages 684,000 rentable square feet on behalf of PS.

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