Head to Head Comparison: RMR Group (RMR) versus Its Competitors

RMR Group (NASDAQ: RMR) is one of 67 public companies in the “Real Estate Development & Operations” industry, but how does it compare to its peers? We will compare RMR Group to similar companies based on the strength of its institutional ownership, risk, dividends, analyst recommendations, valuation, profitability and earnings.

Earnings and Valuation

This table compares RMR Group and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
RMR Group $271.73 million $42.29 million 23.94
RMR Group Competitors $438.91 million $33.86 million 1,266.80

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

Dividends

RMR Group pays an annual dividend of $1.00 per share and has a dividend yield of 1.6%. RMR Group pays out 38.0% of its earnings in the form of a dividend. As a group, “Real Estate Development & Operations” companies pay a dividend yield of 1.5% and pay out 41.9% of their earnings in the form of a dividend. RMR Group is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Volatility and Risk

RMR Group has a beta of -0.69, indicating that its stock price is 169% less volatile than the S&P 500. Comparatively, RMR Group’s peers have a beta of 0.61, indicating that their average stock price is 39% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for RMR Group and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RMR Group 0 3 2 0 2.40
RMR Group Competitors 161 381 797 9 2.49

RMR Group presently has a consensus target price of $58.00, suggesting a potential downside of 7.86%. As a group, “Real Estate Development & Operations” companies have a potential upside of 14.51%. Given RMR Group’s peers stronger consensus rating and higher probable upside, analysts plainly believe RMR Group has less favorable growth aspects than its peers.

Insider & Institutional Ownership

34.4% of RMR Group shares are owned by institutional investors. Comparatively, 35.8% of shares of all “Real Estate Development & Operations” companies are owned by institutional investors. 55.3% of RMR Group shares are owned by insiders. Comparatively, 41.1% of shares of all “Real Estate Development & Operations” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
RMR Group 15.56% 11.27% 8.33%
RMR Group Competitors -4.77% -1.25% 1.32%

Summary

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

About 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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