Gazit-Globe (NYSE: GZT) and The RMR Group (NASDAQ:RMR) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Valuation and Earnings

This table compares Gazit-Globe and The RMR Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gazit-Globe $1.25 billion 1.64 $205.00 million N/A N/A
The RMR Group $266.94 million 3.32 $37.24 million $2.78 21.12

Gazit-Globe has higher revenue and earnings than The RMR Group.

Profitability

This table compares Gazit-Globe and The RMR Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gazit-Globe -45.72% 4.16% 1.53%
The RMR Group 16.44% 10.14% 7.43%

Insider & Institutional Ownership

8.7% of Gazit-Globe shares are held by institutional investors. Comparatively, 34.5% of The RMR Group shares are held by institutional investors. 55.3% of The RMR Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Gazit-Globe pays an annual dividend of $0.40 per share and has a dividend yield of 3.8%. 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.

Analyst Recommendations

This is a summary of current ratings and price targets for Gazit-Globe and The RMR Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gazit-Globe 0 0 3 0 3.00
The RMR Group 0 3 2 0 2.40

Gazit-Globe presently has a consensus target price of $11.00, suggesting a potential upside of 3.68%. The RMR Group has a consensus target price of $59.50, suggesting a potential upside of 1.36%. Given Gazit-Globe’s stronger consensus rating and higher probable upside, analysts clearly believe Gazit-Globe is more favorable than The RMR Group.

Risk and Volatility

Gazit-Globe has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, The RMR Group has a beta of -0.71, meaning that its stock price is 171% less volatile than the S&P 500.

Summary

Gazit-Globe beats The RMR Group on 8 of the 15 factors compared between the two stocks.

Gazit-Globe Company Profile

Gazit-Globe Ltd. is a real estate company specialized in retail premises. The Company is engaged in the acquisition, development and management of properties. Its segments include Finland, Norway, Sweden, and Estonia and Denmark. It focuses on supermarket-anchored shopping centers in urban growth markets. It operates internationally through its publicly traded and privately held subsidiaries. It operates in more than 20 countries, and owns and manages approximately 430 properties with a gross leasable area of approximately 6.5 million square meters. The Company’s properties include Kista Galleria, Iso Omena, Potrero Center, Yorkville Village, Atrium Promenada, Serramonte Shopping Center, Galeria Dominikanska, Westbury Plaza, Northgate Centre, San Pelegrino Shopping Mall, G Tzameret, Kosice Optima Shopping Center, Coens Galerie, Parkway Mall, Rutherford Marketplace, Atrium Copernicus, Atrium Biala, Molo Shopping Center, Wentorf Shopping Center, Plaza Escuela and Mount Royal Village.

The RMR Group Company Profile

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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