Equity One (EQY) versus Select Income REIT (SIR) Financial Analysis
Equity One (NYSE: EQY) and Select Income REIT (NASDAQ:SIR) are both financials companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation and risk.
Valuation and Earnings
This table compares Equity One and Select Income REIT’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Select Income REIT||$462.04 million||N/A||$323.87 million||$0.97||25.25|
Select Income REIT has higher revenue and earnings than Equity One. Select Income REIT is trading at a lower price-to-earnings ratio than Equity One, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for Equity One and Select Income REIT, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Select Income REIT||0||0||1||0||3.00|
Select Income REIT has a consensus price target of $34.00, suggesting a potential upside of 38.83%. Given Select Income REIT’s stronger consensus rating and higher possible upside, analysts clearly believe Select Income REIT is more favorable than Equity One.
Risk and Volatility
Equity One has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, Select Income REIT has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.
This table compares Equity One and Select Income REIT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Select Income REIT||18.65%||4.18%||1.85%|
Institutional and Insider Ownership
64.0% of Equity One shares are held by institutional investors. Comparatively, 48.2% of Select Income REIT shares are held by institutional investors. 35.9% of Equity One shares are held by company insiders. Comparatively, 2.0% of Select Income REIT shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Equity One pays an annual dividend of $0.88 per share and has a dividend yield of 2.9%. Select Income REIT pays an annual dividend of $2.04 per share and has a dividend yield of 8.3%. Equity One pays out 179.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Select Income REIT pays out 210.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Select Income REIT beats Equity One on 8 of the 13 factors compared between the two stocks.
Equity One Company Profile
Equity One, Inc. is a real estate investment trust (REIT). The Company owns, manages, acquires, develops and redevelops shopping centers and retail properties located in supply constrained suburban and urban communities. As of December 31, 2016, the Company’s portfolio consisted of 122 properties, including 101 retail properties and five non-retail properties totaling approximately 12.8 million square feet of gross leasable area (GLA), 10 development or redevelopment properties with approximately 2.3 million square feet of GLA, and six land parcels. Its retail occupancy excluding developments and redevelopments was 95.8% and included national, regional and local tenants as of December 31, 2016. In addition, the Company had joint venture interests in six retail properties and two office buildings totaling approximately 1.4 million square feet of GLA as of December 31, 2016.
Select Income REIT Company Profile
Select Income REIT is a real estate investment trust. The Company is engaged in the ownership of properties that include buildings and leased industrial lands that are primarily net leased to single tenants. As of December 31, 2016, the Company owned 121 properties (362 buildings, leasable land parcels and easements) with approximately 44.8 million rentable square feet. As of December 31, 2016, the Company’s properties consisted of 110 office and industrial properties (133 buildings) with approximately 27.0 million square feet located in 34 states throughout the mainland United States (Mainland Properties), and 11 properties (229 buildings, leasable land parcels and easements) located on the island of Oahu, Hawaii, with approximately 17.8 million rentable square feet that are primarily leased to industrial and commercial tenants (Hawaii Properties). As of December 31, 2016, the Company’s properties were leased to 312 different tenants.
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