Alexandria Real Estate Equities (NYSE: ARE) is one of 74 publicly-traded companies in the “Commercial REITs” industry, but how does it compare to its peers? We will compare Alexandria Real Estate Equities to related companies based on the strength of its dividends, institutional ownership, analyst recommendations, earnings, profitability, valuation and risk.

Analyst Ratings

This is a summary of current recommendations for Alexandria Real Estate Equities and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alexandria Real Estate Equities 0 2 5 0 2.71
Alexandria Real Estate Equities Competitors 588 2330 2156 23 2.32

Alexandria Real Estate Equities presently has a consensus target price of $94.06, suggesting a potential downside of 28.42%. As a group, “Commercial REITs” companies have a potential upside of 6.84%. Given Alexandria Real Estate Equities’ peers higher probable upside, analysts clearly believe Alexandria Real Estate Equities has less favorable growth aspects than its peers.

Profitability

This table compares Alexandria Real Estate Equities and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alexandria Real Estate Equities 13.21% 3.69% 1.83%
Alexandria Real Estate Equities Competitors 49.94% 6.40% 3.70%

Insider and Institutional Ownership

73.1% of shares of all “Commercial REITs” companies are owned by institutional investors. 1.5% of Alexandria Real Estate Equities shares are owned by company insiders. Comparatively, 7.3% of shares of all “Commercial REITs” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Alexandria Real Estate Equities pays an annual dividend of $3.44 per share and has a dividend yield of 2.6%. Alexandria Real Estate Equities pays out 390.9% 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 92.2% of their earnings in the form of a dividend. Alexandria Real Estate Equities has raised its dividend for 6 consecutive years. Alexandria Real Estate Equities lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation and Earnings

This table compares Alexandria Real Estate Equities and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Alexandria Real Estate Equities $921.71 million -$65.90 million 149.32
Alexandria Real Estate Equities Competitors $537.26 million $100.34 million 411.71

Alexandria Real Estate Equities has higher revenue, but lower earnings than its peers. Alexandria Real Estate Equities 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.

Volatility & Risk

Alexandria Real Estate Equities has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, Alexandria Real Estate Equities’ peers have a beta of 0.78, indicating that their average share price is 22% less volatile than the S&P 500.

Summary

Alexandria Real Estate Equities peers beat Alexandria Real Estate Equities on 11 of the 15 factors compared.

Alexandria Real Estate Equities Company Profile

Alexandria Real Estate Equities, Inc. is a real estate investment (REIT). The Company is engaged in the business of providing space for lease to the life science and technology industries. It focuses on collaborative life science and technology campuses. It develops urban cluster campuses and ecosystems. As of December 31, 2016, the Company had 199 properties in North America. As of December 31, 2016, its asset base in North America consisted of 25.2 million square feet, including 19.9 million rentable square feet/foot (RSF) of operating properties, and development and redevelopment of under construction or pre-construction, as well as 5.3 million square feet of future ground-up development projects. Its properties are located in various areas, including Greater Boston, San Francisco, New York City, San Diego, Seattle, Maryland and Research Triangle Park. Its properties include Alexandria Technology Square, Alexandria Park at 128 and Alexandria Technology Center-Gateway.

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