Drive Shack (NYSE: DS) is one of 16 publicly-traded companies in the “Specialized REITs” industry, but how does it contrast to its competitors? We will compare Drive Shack to similar companies based on the strength of its risk, analyst recommendations, dividends, earnings, valuation, institutional ownership and profitability.

Dividends

Drive Shack pays an annual dividend of $0.24 per share and has a dividend yield of 6.5%. Drive Shack pays out -68.6% of its earnings in the form of a dividend. As a group, “Specialized REITs” companies pay a dividend yield of 4.3% and pay out 170.4% of their earnings in the form of a dividend. Drive Shack is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Profitability

This table compares Drive Shack and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Drive Shack -7.05% 25.92% 3.08%
Drive Shack Competitors 36.41% 8.84% 3.25%

Earnings & Valuation

This table compares Drive Shack and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Drive Shack $292.74 million $8.22 million -10.60
Drive Shack Competitors $1.00 billion $531.02 million 29.24

Drive Shack’s competitors have higher revenue and earnings than Drive Shack. Drive Shack is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

41.8% of Drive Shack shares are held by institutional investors. Comparatively, 64.6% of shares of all “Specialized REITs” companies are held by institutional investors. 7.2% of Drive Shack shares are held by insiders. Comparatively, 6.4% of shares of all “Specialized REITs” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Drive Shack has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, Drive Shack’s competitors have a beta of 0.85, suggesting that their average stock price is 15% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Drive Shack and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Drive Shack 0 1 0 0 2.00
Drive Shack Competitors 26 206 552 20 2.70

Drive Shack currently has a consensus price target of $3.75, indicating a potential upside of 1.08%. As a group, “Specialized REITs” companies have a potential upside of 12.34%. Given Drive Shack’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Drive Shack has less favorable growth aspects than its competitors.

Summary

Drive Shack competitors beat Drive Shack on 9 of the 14 factors compared.

About Drive Shack

Drive Shack Inc., formerly Newcastle Investment Corp., is a leisure company. The Company is an owner and operator of golf-related leisure and entertainment businesses. The Company’s portfolio consists of Drive Shack, which is engaged in developing nationwide network of golf entertainment venues; American Golf Corporation, which is a golf course company, and real estate-related assets. American Golf Corporation operates approximately 90 private, resort and public golf courses throughout the United States. It has a range of public and private golf courses in California, New York, and Georgia. It operates multiple facilities that provide golf, tennis, swimming and spa facilities, among others. Its online Pro Shop offers a range of golf gifts, such as personalized golf balls, golf luggage and accessories. Its public golf courses equipped with practice areas, golf shops, driving ranges, and food and beverage options.

Receive News & Ratings for Drive Shack Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Drive Shack Inc. and related companies with MarketBeat.com's FREE daily email newsletter.