Head-To-Head Analysis: PS Business Parks (PSB) vs. Its Rivals
PS Business Parks (NYSE: PSB) is one of 85 publicly-traded companies in the “Commercial REITs” industry, but how does it contrast to its rivals? We will compare PS Business Parks to related companies based on the strength of its institutional ownership, dividends, risk, analyst recommendations, earnings, profitability and valuation.
Volatility & Risk
PS Business Parks has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, PS Business Parks’ rivals have a beta of 0.81, suggesting that their average share price is 19% less volatile than the S&P 500.
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 205.1% of their earnings in the form of a dividend. PS Business Parks has increased its dividend for 3 consecutive years.
This is a breakdown of recent ratings and target prices for PS Business Parks and its rivals, 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||628||2466||2130||22||2.29|
PS Business Parks presently has a consensus target price of $107.00, indicating a potential downside of 20.92%. As a group, “Commercial REITs” companies have a potential upside of 6.37%. Given PS Business Parks’ rivals stronger consensus rating and higher possible upside, analysts clearly believe PS Business Parks has less favorable growth aspects than its rivals.
This table compares PS Business Parks and its rivals’ 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||50.87%||6.60%||3.77%|
Valuation and Earnings
This table compares PS Business Parks and its rivals gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|PS Business Parks||$394.93 million||$261.16 million||44.22|
|PS Business Parks Competitors||$482.34 million||$305.34 million||32.43|
PS Business Parks’ rivals have higher revenue and earnings than PS Business Parks. PS Business Parks is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Insider & Institutional Ownership
72.3% of PS Business Parks shares are held by institutional investors. Comparatively, 68.7% of shares of all “Commercial REITs” companies are held by institutional investors. 1.6% of PS Business Parks shares are held by company insiders. Comparatively, 8.3% of shares of all “Commercial REITs” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
PS Business Parks rivals 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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