The RMR Group (NASDAQ: RMR) is one of 63 publicly-traded companies in the “Real Estate Development & Operations” industry, but how does it weigh in compared to its peers? We will compare The RMR Group to related companies based on the strength of its profitability, analyst recommendations, dividends, risk, earnings, institutional ownership and valuation.

Analyst Ratings

This is a breakdown of current ratings and price targets for The RMR Group and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The RMR Group 0 3 2 0 2.40
The RMR Group Competitors 150 349 793 5 2.50

The RMR Group currently has a consensus target price of $59.50, suggesting a potential upside of 0.85%. As a group, “Real Estate Development & Operations” companies have a potential upside of 78.21%. Given The RMR Group’s peers stronger consensus rating and higher probable upside, analysts clearly believe The RMR Group has less favorable growth aspects than its peers.

Institutional & Insider Ownership

34.5% of The RMR Group shares are owned by institutional investors. Comparatively, 36.6% of shares of all “Real Estate Development & Operations” companies are owned by institutional investors. 55.3% of The RMR Group shares are owned by insiders. Comparatively, 39.5% of shares of all “Real Estate Development & Operations” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares The RMR Group and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
The RMR Group $266.94 million $37.24 million 21.22
The RMR Group Competitors $454.80 million $34.16 million 886.66

The RMR Group’s peers have higher revenue, but lower earnings than The RMR Group. The RMR 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.

Profitability

This table compares The RMR Group and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The RMR Group 16.44% 10.14% 7.43%
The RMR Group Competitors -5.44% -0.93% 2.15%

Dividends

The RMR Group pays an annual dividend of $1.00 per share and has a dividend yield of 1.7%. The RMR Group pays out 36.0% of its earnings in the form of a dividend. As a group, “Real Estate Development & Operations” companies pay a dividend yield of 1.7% and pay out 43.6% of their earnings in the form of a dividend. The RMR Group is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Volatility & Risk

The RMR Group has a beta of -0.86, meaning that its share price is 186% less volatile than the S&P 500. Comparatively, The RMR Group’s peers have a beta of 0.78, meaning that their average share price is 22% less volatile than the S&P 500.

Summary

The RMR Group peers beat The RMR Group on 8 of the 15 factors compared.

About The RMR Group

The RMR Group Inc. is a holding company. The Company’s business is primarily conducted by its subsidiary, The RMR Group LLC (RMR LLC). The Company’s segments include RMR LLC and All Other Operations. RMR LLC manages a portfolio of publicly owned real estate and real estate related businesses. RMR LLC manages Government Properties Income Trust, a real estate investment trust (REIT) that primarily owns properties that are leased to government tenants; Hospitality Properties Trust, an REIT that primarily owns hotels and travel centers; Select Income REIT, an REIT that primarily owns properties leased to single tenants across the United States and leased lands in Hawaii, and Senior Housing Properties Trust, an REIT that primarily owns senior living communities and medical office buildings. As of June 30, 2016, RMR LLC managed over 1,300 properties, which were located in 48 states, Washington, District of Columbia, Puerto Rico and Canada.

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