Paramount Group (PGRE) and Its Rivals Head-To-Head Comparison
Paramount Group (NYSE: PGRE) is one of 20 public companies in the “Office REITs” industry, but how does it weigh in compared to its peers? We will compare Paramount Group to similar companies based on the strength of its earnings, institutional ownership, risk, valuation, dividends, analyst recommendations and profitability.
Volatility & Risk
Paramount Group has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, Paramount Group’s peers have a beta of 0.91, meaning that their average stock price is 9% less volatile than the S&P 500.
Insider & Institutional Ownership
62.6% of Paramount Group shares are held by institutional investors. Comparatively, 85.9% of shares of all “Office REITs” companies are held by institutional investors. 5.9% of Paramount Group shares are held by insiders. Comparatively, 3.2% of shares of all “Office REITs” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of recent ratings for Paramount Group and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Paramount Group Competitors||173||634||610||10||2.32|
Paramount Group currently has a consensus price target of $15.50, indicating a potential downside of 3.19%. As a group, “Office REITs” companies have a potential upside of 10.21%. Given Paramount Group’s peers stronger consensus rating and higher possible upside, analysts clearly believe Paramount Group has less favorable growth aspects than its peers.
Paramount Group pays an annual dividend of $0.38 per share and has a dividend yield of 2.4%. Paramount Group pays out 92.7% 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, “Office REITs” companies pay a dividend yield of 3.4% and pay out 249.2% of their earnings in the form of a dividend.
Earnings and Valuation
This table compares Paramount Group and its peers top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Paramount Group||$708.66 million||$384.89 million||39.05|
|Paramount Group Competitors||$648.15 million||$343.67 million||59.45|
Paramount Group has higher revenue and earnings than its peers. Paramount Group 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.
This table compares Paramount Group and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Paramount Group Competitors||5.41%||1.37%||0.69%|
Paramount Group peers beat Paramount Group on 8 of the 15 factors compared.
About Paramount Group
Paramount Group, Inc. is a fully-integrated real estate investment trust (REIT) focused on owning, operating, managing, acquiring and redeveloping Class A office properties in select central business district submarkets of New York City, Washington, District of Columbia (D.C.) and San Francisco. The Company conducts its business through, and substantially all its interests in properties and investments are held by, Paramount Group Operating Partnership LP (the Operating Partnership). The Company’s segments include New York, Washington, D.C. and San Francisco. As of December 31, 2016, the Company’s portfolio consisted of 13 Class A office properties aggregating approximately 10.8 million square feet that was 93.3% leased and 90.9% occupied. The Company also has an investment management business, where it serves as the general partner and property manager of certain private equity real estate funds for institutional investors and high-net-worth individuals.
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