iStar Financial (STAR) vs. Its Peers Critical Analysis

iStar Financial (NYSE: STAR) is one of 13 public companies in the “Diversified REITs” industry, but how does it compare to its competitors? We will compare iStar Financial to similar companies based on the strength of its institutional ownership, analyst recommendations, dividends, earnings, risk, profitability and valuation.

Analyst Recommendations

This is a summary of current recommendations and price targets for iStar Financial and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
iStar Financial 0 2 0 0 2.00
iStar Financial Competitors 33 108 138 2 2.39

iStar Financial currently has a consensus target price of $14.00, indicating a potential upside of 23.78%. As a group, “Diversified REITs” companies have a potential upside of 13.10%. Given iStar Financial’s higher probable upside, analysts clearly believe iStar Financial is more favorable than its competitors.

Institutional and Insider Ownership

83.1% of iStar Financial shares are owned by institutional investors. Comparatively, 53.1% of shares of all “Diversified REITs” companies are owned by institutional investors. 4.4% of iStar Financial shares are owned by insiders. Comparatively, 18.8% of shares of all “Diversified REITs” companies are owned by 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.

Valuation & Earnings

This table compares iStar Financial and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
iStar Financial $477.03 million $95.30 million 12.43
iStar Financial Competitors $374.45 million $65.18 million 1.56

iStar Financial has higher revenue and earnings than its competitors. iStar Financial is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

iStar Financial has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, iStar Financial’s competitors have a beta of 0.85, indicating that their average share price is 15% less volatile than the S&P 500.

Profitability

This table compares iStar Financial and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
iStar Financial 24.13% 19.57% 3.97%
iStar Financial Competitors 23.52% 7.50% 2.70%

Summary

iStar Financial beats its competitors on 9 of the 13 factors compared.

iStar Financial Company Profile

iStar Inc. finances, invests in and develops real estate and real estate related projects as part of its integrated investment platform. The Company’s four business segments are Real Estate Finance, Net Lease, Operating Properties, and Land and Development. The Real Estate Finance portfolio consists of senior and mezzanine real estate loans that may be either fixed-rate or variable-rate. The Net Lease portfolio consists of properties owned by the Company and leased to single tenants, where the properties are subject to long-term leases. The Operating Properties portfolio consists of commercial and residential properties, which represent a pool of assets across a range of geographies and property types. The Land and Development portfolio consists of land entitled for master planned communities, as well as waterfront and urban infill land parcels located throughout the United States. Its Land and Development projects include Great Oaks, Sage Scottsdale, Naples Reserve and Coney Island.

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