Analyzing Equity Commonwealth (EQC) & istar (STAR)

Equity Commonwealth (NYSE: EQC) and istar (NYSE:STAR) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Equity Commonwealth and istar, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Equity Commonwealth 0 0 2 0 3.00
istar 0 3 0 0 2.00

Equity Commonwealth presently has a consensus price target of $32.50, indicating a potential upside of 2.91%. istar has a consensus price target of $14.00, indicating a potential upside of 26.93%. Given istar’s higher probable upside, analysts clearly believe istar is more favorable than Equity Commonwealth.

Earnings & Valuation

This table compares Equity Commonwealth and istar’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Equity Commonwealth $340.57 million 11.26 $29.65 million $0.92 34.33
istar $679.20 million 1.10 $175.68 million $2.31 4.77

istar has higher revenue and earnings than Equity Commonwealth. istar is trading at a lower price-to-earnings ratio than Equity Commonwealth, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

97.2% of Equity Commonwealth shares are held by institutional investors. Comparatively, 84.2% of istar shares are held by institutional investors. 1.3% of Equity Commonwealth shares are held by insiders. Comparatively, 5.0% of istar shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Equity Commonwealth and istar’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Equity Commonwealth 64.57% 6.03% 4.52%
istar 24.05% 28.33% 5.78%

Risk & Volatility

Equity Commonwealth has a beta of 0.1, meaning that its stock price is 90% less volatile than the S&P 500. Comparatively, istar has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.

Summary

istar beats Equity Commonwealth on 8 of the 14 factors compared between the two stocks.

Equity Commonwealth Company Profile

Equity Commonwealth (NYSE: EQC) is a Chicago based, internally managed and self-advised real estate investment trust (REIT) with commercial office properties throughout the United States. As of March 31, 2018, EQC's same property portfolio comprised 13 properties and 6.3 million square feet.

istar Company Profile

iStar (NYSE: STAR) finances, invests in and develops real estate and real estate related projects as part of its fully-integrated investment platform. Building on over two decades of experience and more than $35 billion of transactions, iStar brings uncommon capabilities and new ways of thinking to commercial real estate and adapts its investment strategy to changing market conditions. The Company is structured as a real estate investment trust ("REIT"), with a diversified portfolio focused on larger assets located in major metropolitan markets.

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